Question: b) (20 points) In the space below, use the Lucas Island Model to provide an explanation as to why money is leading and pro-cyclical according

b) (20 points) In the space below, use the "Lucas Island

b) (20 points) In the space below, use the "Lucas Island Model" to provide an explanation as to why money is leading and pro-cyclical according to the New Classical Economists. Be sure to include a completely labeled AS/AD diagram and an explanation of what we mean exactly by a Lucas Aggregate supply curve (along with the intuition underlying it). Finish your essay by discussing whether or not money is neutral in this New Classical model and why

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