1. Explain how money non-neutrality can be obtained in a New Classical framework (hint: use Lucas' 1972 money surprise model). Why is non-neutrality perceived as a "bad" thing in Lucas' model?
   1. Lucas changed the assumption of imperfect information -
   2. Between changes between nominal and real wages
   3. When nominal wages go up we can perceive it as an increase in real wage and work more which will increase real gdp
   4. Were not able to calculate if its nominal or real wage - we perceive it as in increase in real wage
   5. Its perceived as bad bc in a way workers are "tricked" even if it produces an increase in gdp in the economy