The neo-classical theory of output and employment rests on a theoretical foundation of:

• Say's Law

  Say's Law
• Complete adjustment of wages and prices, as well as Say's Law.

  Complete adjustment of wages and prices, as well as Say's Law.
• Monetary policy changes effected by the central bank

  Monetary policy changes effected by the central bank
• Autarchy (absence of free trade/highly restricted trade with the outside world)