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.
Correct Answer:

Verified
Correct Answer:
Verified
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