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Effect on aggregate demand and aggregate supply model

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To enhance my learning could you please in a step-by-step process how to answer this problem resulting effect on the Aggregate Demand/Aggregate Supply Model? Please explain in simple terms.

Under what circumstances might the Fed want to shrink (contract) the money supply?

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Finance Basics: Effect on aggregate demand and aggregate supply model

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Finance Basics: Effect on aggregate demand and aggregate supply model

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