Consider an economy that is initially in long-run equilibrium. If the Central Bank (CB) decides to decrease the money supply, then the following events will occur: Question 28 options: a.in the short run, the aggregate-demand curve shifts to the left and output falls; long-run equilibrium cannot be restored unless the CB increases the money supply back to its original level. b.in the short run, the aggregate-demand curve shifts to the right and output rises; in the long-run the price level gradually adjusts upward, and output returns to its long-run (full-employment) equilibrium level. c.in the short run the aggregate-demand curve shifts to the left and output falls; in the long-run the price level gradually adjusts downward, and output returns to its long-run (full-employment) equilibrium level. d.in the short run, the aggregate-demand curve shifts to the left, the price level rises and output falls; in the long-run, the aggregate-demand curve gradually shifts back to the right and output returns to its long-run (full-employment)