In the AD and SRAS model, an unexpected decrease in the growth rate of the money supply causes

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An unexpected decrease in the growth rate of the money supply causes a decrease in aggregate demand, shifting the AD curve leftward. This causes a decrease in output and an increase in unemployment in the short run. In response, firms may decrease their prices to maintain market share, leading to a downward shift of the SRAS curve. The end result is a decrease in both output and prices.

In the AD and SRAS Model, an Unexpected Decrease in the Growth