1.3. Having studied the new classical model, the new chair- man of the Federal Reserve Board has thought up a surefire plan for reducing inflation and lowering unem- ployment. 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 unem- ployment? 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?