Final answer:
In a recessionary gap, the economy experiences a labor surplus, leading to a fall in wage rates and a subsequent rightward shift in the short-run aggregate supply curve (SRAS) as it self-regulates over time.
Step-by-step explanation:
When the economy is in a recessionary gap, the labor market is experiencing a surplus of labor, meaning there are more people willing to work at the current wage rate than there are jobs available. In a self-regulating economy, wage rates will then fall, and the short-run aggregate supply curve, or SRAS, will shift rightward. This adjustment process happens because firms perceive the slowdown in the economy and reduce their demand for labor, which leads to a shift to the left in the labor demand curve. With wages being sticky downwards, the immediate adjustment may not occur; however, over time, as wages adjust, the SRAS will shift rightward reflecting the decrease in production costs.