A Contractionary Gap May Be Closed in the Long Run

question 8

Multiple Choice

A contractionary gap may be closed in the long run by a(n)

• A)rightward shift of the short-run aggregate supply curve
• B)leftward shift of the short-run aggregate supply curve
• C)rightward movement along a fixed short-run aggregate supply curve
• D)decrease in aggregate demand
• E)increase in aggregate demand

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Definitions:

Accumulated Depreciation

Is the total depreciation of a company's fixed assets up to a specified time, reflecting how much of the asset's value has been used up.

Initial Cost

The original expense incurred to purchase an asset or the cost associated with starting a project.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price.

Batting Cages

Enclosed areas designed for practicing batting skills in baseball or softball, usually equipped with pitching machines.