If the Economy Is Experiencing a Recessionary GDP Gap from a Negative

Multiple Choice

If the economy is experiencing a recessionary GDP gap from a negative demand shock,then aggregate

A) Supply must be increased to curtail the ensuing inflation
B) Supply must be decreased so that producers will have fewer goods to sell.
C) Demand must be increased so that producers can sell more goods.
D) Demand must be decreased further to adjust to the new,lower natural rate of employment.