Morgan Stanley expects a “U shape” recovery, some forecasters see a “W,” or worse. Answers to three key questions inform their brighter outlook.

It may seem elementary, but it can be helpful to think about the shape of an economic recovery in terms of letters. Morgan Stanley believes that the U.S. economy is set for a “U shape”—or even a “V shape”—recovery, where economic activity will bottom, perhaps very soon, and then recover steadily.