# How does a decrease in money supply affect price levels and Real GDP in the short run?

Specifically, when a short run AS curve is positive, how does a decrease in money supply affect price levels and Real GDP in the short run?

Thank you!

A household with an income of $10,000 per month is likely to demand a larger quantity of money than a household with an income of$1,000 per month. That relationship suggests that money is a normal good: as income increases, people demand more money at each interest rate, and as income falls, they demand less.