According to the Classical view of business cycles:

1. Fluctuations in business activity always occur in regular and predictable patterns.

2. The appropriate macroeconomic policy can easily eliminate all fluctuations in business activity.

3. Contractions and expansions of the business cycle are symptoms of underlying problems in the economy and must be dealt with.

4. Fluctuations in business activity are to be expected and must be accepted just like changes in the seasons of a year are accepted.