Question 3 Suppose an economy characterized by flexible prices and rigid nominal wage in the short-run Using Aggregate Demand—Aggregate Supply framework, discuss the short-run and long-run effects...

Question 3 Suppose an economy characterized by flexible prices and rigid nominal wage in the short-run Using Aggregate Demand—Aggregate Supply framework, discuss the short-run and long-run effects of a decrease in money supply on the price level, real GDP, nominal wage rate and real wage rate