If the Fed orders a contractionary monetary policy, describe…

Questions

If the Fed оrders а cоntrаctiоnаry monetary policy, describe what will happen in the short run to the following variables relative to what would have happened without the policy based on the standard AD/AS model with adaptive expectations (SRAS is upward sloping throughout the relevant range): a) Money Supply will [MS]. b) Interest rates will [IR]. c) Investment (I) will  [I]. d) Consumption (C) will [C]. e) The aggregate demand curve (AD) will [AD]. f) The price level will [PL]