2. (40 points total) When Milton Friedman and Anna Schwartz in a book titled: A Monetary History of the United States, 18671960 uncovered the empirical reality that money is 'pro-cyclical' and 'leading,' the classical economists "went to the drawing board.\" We discussed how the RBC theorists explained this phenomenon through reverse causation. We also discussed how the New Classical School explained this phenomenon via the Lucas Island Model. a) (20 points) In the space below, provide the RBC explanation as to why money is leading and pro-cyclical. Be sure to include a money market diagram, an ISLM diagram, and an AS/AD diagram in your answer being sure to refer to your graphs in your essay. Finish your essay by discussing whether or not money is neutral in the RBC model and why. Explanation: up L