Final answer:
Classical economists argue against using fiscal policy to smooth the business cycle, pointing to the economy's natural tendency to self-correct, the difficulties in enacting timely and accurate measures, and the potential inefficiencies of government intervention.
Step-by-step explanation:
According to classical economists, fiscal policy should not be used to smooth out the business cycle because they believe that the economy will self-correct over time. The neoclassical perspective raises concerns about the government's capacity to identify the correct timing and magnitude of fiscal policies, such as tax changes or spending adjustments, to effectively manage aggregate demand.
Moreover, these economists point out practical issues such as the delay in obtaining accurate GDP data and the time-consuming nature of the political process to enact fiscal policy changes. They question whether such Keynesian measures can be deployed in a timely and effective manner, given the challenges in assessing economic conditions and the lags in implementing policies. Instead, they see more value in focusing on automatic stabilizers and monetary policy for managing short-term economic fluctuations.