Assuming the economy is experiencing a recessionary gap, classical economists predict that:

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Classical economists believe that prices and wages are flexible in both the short-run and long-run. Therefore, if the economy is experiencing a recessionary gap, they would expect wages to decrease in order to shift the short-run aggregate supply curve rightward and close the gap. Lower wages would encourage firms to increase production and hire more workers, increasing output and reducing unemployment.

Assuming the Economy Is Experiencing a Recessionary Gap, Classical Economists