Question: The classical school (referred to as "Mainstream Business Cycle Theory" in this chapter) has been around for hundreds of years. In its essence, it is assumed that the economy will hover about its natural long run tendency and generate full employment at its natural rate. If this is so, how can one explain economic situations where the full employment rate is not met? Does this destroy the classical position intellectually or does the philosophy allow for such variations? Explain. Explain your answers and provides examples.