The price of gasoline has fallen recently

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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) ____________

Reference no: EM131103582

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