-In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be

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When the Fed decreases the money supply, it leads to a decrease in aggregate demand, shifting the curve to the left (from AD to AD1 in this scenario). In the long run, the economy adjusts, and the price level decreases to restore long-run equilibrium. The initial equilibrium at point d indicates a price level of 100, which remains unchanged in the long run after all adjustments have taken place, despite the short-term fluctuations.

-In the Above Figure, Assume the Economy Is in Equilibrium