Which of the Following Best Describes How an Economy Overcomes

Multiple Choice

Which of the following best describes how an economy overcomes an expansionary gap in the long run if the government does NOT intervene?  

A)  In the long run, this gap will be closed by an increase in aggregate demand. 
B)  In the long run, this gap will close when resource suppliers negotiate lower resource payments. 
C)  In the long run, this gap will close when the short-run aggregate supply curve shifts rightward. 
D)  In the long run, this gap will close when resource suppliers negotiate higher resource payments.