Final answer:
Neoclassical economists would likely support monetary policy measures to address a recession caused by a drop in aggregate demand. They are generally skeptical about the government's ability to efficiently implement fiscal policy and would not typically advocate for Keynesian approaches like increased spending or tax cuts.
Step-by-step explanation:
If an economy goes into recession due to a drop in aggregate demand, a neoclassical economist would likely advocate for policies that allow the economy to correct itself over time, rather than extensive government intervention. Unlike Keynesian macroeconomics, which would suggest aggressive use of fiscal policy such as tax cuts or increased government spending to stimulate the economy and eliminate the recessionary gap, neoclassical economists are skeptical about the government's ability to adjust aggregate demand in a timely and effective manner. Hence, they might prefer monetary policy measures that could provide some relief without direct government spending.
For example, they might support measures that enable the central bank to reduce interest rates, which could encourage borrowing and investment. However, measures such as revamping welfare programs to incentivize work might be supported to a lesser extent, as they involve government intervention but are more structural than purely Keynesian stimulus measures. Government retraining programs are also less likely to be supported as they represent direct intervention to correct market outcomes.