Solved: If you want to make money neutral under new classical nc, Macroeconomics

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If you want to make money neutral under new classical nc

True or False

1. If you want to make money neutral under New Classical (NC) Theory, then you have to change the money supply without announcing the change ahead of time.

2. According to Real Business Cycle (RBC) Theory, you can "fool" workers even if you announce policy changes because expectations are backward-looking.

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Macroeconomics: If you want to make money neutral under new classical nc

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