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-(Figure: AD-AS Model and the Short-Run Phillips Curve) Refer to Figure: AD-AS Model and the Short-Run Phillips Curve. If the central bank decreases the money supply so that aggregate demand shifts from AD₂ to AD₁, then the unemployment rate will be:

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-(Figure: AD-AS Model and the Short-Run Phillips Curve) Refer to Figure: AD-AS Model and the Short-Run Phillips Curve. If the central bank decreases the money supply so that aggregate demand shifts from AD₂ to AD₁, then the unemployment rate will be:

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When the central bank decreases the money supply, aggregate demand decreases, leading to a lower price level and output in the short run. This results in higher unemployment, which, according to the Phillips curve, increases as output decreases. Without the specific figure, the general principle is that a decrease in aggregate demand leads to higher unemployment, and among the provided options, 6% represents a plausible increase in unemployment following a contractionary monetary policy.

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