If the economy is experiencing an inflationary gap, classical economists argue that the Federal Reserve should lower interest rates.

Name: If the economy is experiencing an inflationary gap, classical economists argue that the Federal Reserve should lower interest rates.
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Classical economists would argue that the economy would self-correct and adjust back to its natural level of output and employment, therefore they would not recommend any intervention by the Federal Reserve.

If the Economy Is Experiencing an Inflationary Gap, Classical Economists