According to the New Classical Theory, Why May Output Differ

question 27

Essay

According to the New Classical theory, why may output differ from its full-employment level in the short run?

---

Definitions:

Presynaptic Cell

A presynaptic cell refers to the neuron that sends a message across the synaptic cleft, releasing neurotransmitters from its axon terminal.

Synaptic Cleft

The small gap between the presynaptic and postsynaptic neurons across which neurotransmitters are released to transmit signals.

Postsynaptic Cell

The neuron or cell that receives a signal (neurotransmitters) from another neuron at a synapse.

Neurotransmitter

Chemicals released by neurons at synapses, which transmit signals across a chemical synapse from one neuron to another neuron, muscle cell, or gland cell.