If policymakers do nothing in response to a recessionary gap, what will happen?

Question

Quizplus · Accepted Answer

In the absence of policy intervention, the economy will self-correct from a recessionary gap, but this process is typically slow. Unemployment will decrease as the economy gradually returns to its potential output, and inflation will likely remain low or decrease due to the initial conditions of the recessionary gap, which is characterized by excess supply over demand.

If Policymakers Do Nothing in Response to a Recessionary Gap