If the Economy Diverges from Its Full-Employment Output, New Classical

question 37

Multiple Choice

If the economy diverges from its full-employment output, new classical economics would suggest that

• A) a change in the velocity of money would be all that is needed to return it to its full- employment output.
• B) an improvement in insider-outsider relationships is all that is needed to return it to its full- employment output.
• C) an efficiency wage in the economy would return it to its full-employment output.
• D) internal mechanisms within the economy would automatically return it to its full- employment output.

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Definitions:

Trait Approach

A perspective in leadership studies focusing on identifying specific qualities and characteristics that are associated with effective leadership.

Leadership Success

Refers to the effectiveness and positive outcomes attained by individuals in leadership positions within organizations.

Position Power

The authority and influence a person holds in an organization based on their job or position.

Reward And Punish

Techniques used in managing behavior by offering incentives for desired actions and penalties for undesirable ones.