In the long run, a decrease in the money supply will affect the price level and the level of output a decrease in the money supply will cause the price level to decrease but will not change the level of output.
The money supply is the total quantity of money (currency plus deposit money) in an economy at any one moment. Currency in circulation and demand deposits are typically used to define money. There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' immediately accessible assets on financial institutions' accounts). Money supply figures are typically recorded and released by the country's government or central bank.
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