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

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.