Suppose the economy is in long run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. now assume that the central bank unexpectedly decreases the money supply by 6%.

C. Now assume that this monetary contraction was completely expected. Illustrate both short and long run effects on the macro economy by using the aggregate demand-aggregate supply model. Be sure to indicate the direction of change in real GDP, the price level and the unemployment rate.