Which of the Following Is True of a Recessionary Gap

Multiple Choice

Which of the following is true of a recessionary gap?

A) It develops when the expected price level is less than the actual price level.
B) In the long run, this gap closes when resource suppliers negotiate lower resource payments.
C) It measures the amount by which actual output is greater than an economy's potential output.
D) In the long run, this gap closes when the short-run aggregate supply curve shifts leftward.
E) In the long run, this gap closes when the aggregate demand curve shifts rightward.