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How Might a Recessionary Gap Be Closed in the Long

Question 136

Multiple Choice

How might a recessionary gap be closed in the long run, assuming a passive policy?  


A)  by a rightward shift of the short-run aggregate supply curve 
B)  by a leftward shift of the short-run aggregate supply curve 
C)  by a rightward movement along a fixed short-run aggregate supply curve 
D)  by a decrease in aggregate demand

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