This school of thought was born in the early 1970s thanks to the work of economists at the Universities of Chicago and Minnesota, in particular Robert Lucas. This school of thought emphasizes the importance of rigorous foundations that rely on microeconomics. New classical macroeconomics strives to provide neoclassical microeconomic foundations for macroeconomic analysis. The new classical school of economics began with Lucas and Leonard Rapping's attempt to provide microfoundations to the Keynesian labor market. They applied the rule that equilibrium in a market occurs when the quantity supplied equals the quantity demanded. According to Keyne, recessions occur when aggregate demand falls, causing businesses to produce below capacity. Because businesses would start producing less, they would need fewer workers and employment would decline. The new classical economists reject this idea. They believe that involuntary unemployment would provide businesses with an opportunity to increase profits. This would be possible by paying workers a lower wage. If companies decided not to take advantage of this opportunity, they would not proceed with optimization. The new classical macroeconomics is based on two fundamental principles. The first is that individuals are considered optimizers: they choose the best option available to them. Second, as a first approximation, prices adjust, incentives to