FIGURE 27-4 Refer to Figure 27-4. The economy begins in equilibrium at E0. Now consider an expansion of the money supply. The initial effect is a simultaneous shift of AD to AD1 and AS to AS1, resulting in a new equilibrium at E2. no change in the short-run equilibrium or level of real GDP. a shift of the AD curve to AD1, and then a shift back to AD0 to restore equilibrium at E0. a shift of the AD curve to AD1 and an increase in real GDP to Y1. a shift of the AS curve to AS1 and a decrease in real GDP to Y2