Problem
Suppose the economy is in long-run equilibrium, with real GDP at $17.5 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases the money supply by 6%. Illustrate the shortrun effects on the macroeconomy, using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in the price level, real GDP, and the unemployment rate.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.