Which of the Following Is True of an Expansionary Gap

Multiple Choice

Which of the following is true of an expansionary gap?

A) It develops when the expected price level exceeds the actual price level.
B) In the long run,this gap will close when resource suppliers negotiate lower resource payments.
C) It measures the amount by which actual output falls short of the economy's potential.
D) In the long run,this gap will close when the short-run aggregate supply curve shifts rightward.
E) In the long run,this gap will close when resource suppliers negotiate higher resource payments.