A recessionary gap is usually closed in the long run by a(n) :

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

Recessionary Gap

A situation where actual economic output is lower than the output that would be achieved at full employment, indicating underutilized resources.

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for output in the short-run, acknowledging some input prices are fixed.