Suppose a Recessionary Gap Exists and Resource Prices Are NOT

Multiple Choice

Suppose a recessionary gap exists and resource prices are NOT flexible downward.What will be the effect on the short-run aggregate supply curve?  

A)  It will shift leftward, to return the economy to its potential output. 
B)  It will shift rightward, to return the economy to its potential output. 
C)  It will remain the same, and the recessionary gap will continue. 
D)  It will become the long-run aggregate supply curve.