Suppose that the economy is at its natural rate (Y = Y-Bar ). Just recently there has been a permanent decline in money demand. Assuming price rigidity in the short run (horizontal SRAS) and using IS-LM, AD-SRAS-LRAS curves, illustrate and explain what will happen to r, P, I, and Y in the short run and in the long run in the absence of any monetary or fiscal policy.

I just need help understanding what is happening below in each section as it relates to the question above with the economy being at a natural rate! Thank you for any help with this!

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