The price of gasoline has fallen recently which has lowered shipping costs for most of the inputs firms use. Determine how this would affect aggregate demand (AD) and/or short-run aggregate supply (SRAS) and the effect that would have on the aggregate price level (PL) and aggregate output (real GDP).
AD would (increase, decrease, stay the same) ____________
SRAS would (increase, decrease, stay the same) ____________
The PL would (increase, decrease, stay the same) ____________
Real GDP would (increase, decrease, stay the same) ____________