Suppose the Economy Is in a Recessionary Gap

Multiple Choice

Suppose the economy is in a recessionary gap. In the absence of any policy intervention, the short-run aggregate supply curve will eventually shift:

A) down (to the right) , causing the price level to fall and output to rise.
B) down (to the right) , causing the price level to fall and output to fall.
C) down (to the right) , causing the price level to rise and output to fall.
D) up (to the left) , causing the price level to fall and output to rise.