A decrease in the supply of money will lead to a decrease in equilibrium real GDP and an increase in equilibrium price level.
In the economy, higher interest rates leads to a lower supply of money. Since the supply of money decreases, it raises borrowing costs, which makes it more expensive for consumers to hold debt.
Changes in the money supply lead to changes in the interest rate. When real GDP increases, there are more goods and services to be bought. Thus, a decrease in real GDP will cause the money demand curve to decrease.
Hence, a decrease in supply of money will lead to a decrease in equilibrium real GDP and an increase in equilibrium price level.
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