According to the new classical school, if macroeconomic policy is perfectly predictable, then the aggregate supply curve and the Phillips curve must be vertical in both the short run and the long run.

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The new classical school argues that the aggregate supply curve and the Phillips curve are vertical in the long run due to expectations being fully adjusted, but this does not necessarily apply to the short run. In the short run, if policies are perfectly predictable, individuals can adjust their expectations, but this does not immediately render the short-run aggregate supply curve or the short-run Phillips curve vertical; it primarily affects the long-run perspective where full information and adjustment to expectations are assumed.

According to the New Classical School, If Macroeconomic Policy Is