In a model with sticky nominal wages an increase in the money supply will:

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In a model with sticky wages, an increase in the money supply will increase aggregate demand which will lead to an increase in real output (i.e. increase in GDP). However, nominal wages are sticky and do not fully adjust immediately to the increase in demand, so the increase in output occurs at the expense of higher employment costs (i.e. real wages do not rise as much as output). Therefore, real wages may not necessarily increase, and the labor input may not necessarily decrease.

In a Model with Sticky Nominal Wages an Increase in the Money