a. The demand for money increases
b. The velocity of money decreases.
c.AD shifts left. In the short run, go from A to B.  Y goes down while P stays constant
In the long run go from B to C, because Y is less than Y bar, P decreases and Y goes back to Y bar
			P			LRAS
			Pbar			B	A	SRAS
			P1				C
							AD2	AD1
					Y	Ybar			Y