“Even if some people do not form their expectations rationally, the new classical theory is not necessarily of no value.” Discuss this statement. In real business cycle theory, why can’t the change in...

“Even if some people do not form their expectations rationally, the new classical theory is not necessarily of no value.” Discuss this statement. In real business cycle theory, why can’t the change in the money supply prompted by a series of events catalyzed by an adverse supply shock be considered the cause of the business cycle?