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

question 53

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

---

Definitions:

Oppositional Defiant Disorder

A behavioral disorder in children characterized by constant disobedience, hostility, and defiance towards authority figures.

Social Factors

Elements within a society that influence the behavior, attitudes, and development of its members, such as family, education, and economic status.

Conduct Disorder

A pattern of repetitive behavior in which the rights of others or social norms are violated.

Fast Track

A process or method that accelerates the usual progression or treatment of something, often used in contexts like project management, clinical trials, or education.