In the aggregate demand-aggregate supply model, what will be the effects of a decrease in the money supply in the short run?

Question

Quizplus · Accepted Answer

A decrease in the money supply typically leads to higher interest rates, which reduces investment and spending. This decrease in spending leads to a lower aggregate demand, which results in a decrease in both the price level and real GDP in the short run.

In the Aggregate Demand-Aggregate Supply Model, What Will Be the Effects