Having studied the new classical model, the new chairman of the Federal Reserve Board has thought up a surefire plan for reducing inflation and lowering unemployment. He announces that the Fed will lower the rate of money growth from 10% to 5% and then persuades the FOMC to keep the rate of money growth at 10%. If the new classical view of the world is correct, can his plan achieve the goals of lowering inflation and unemployment? How? Do you think his plan will work? If the traditional model’s view of the world is correct, will the Fed chairman’s surefire plan work?