Using the aggregate demand-aggregate supply model, predict what happens in the short run when there is a general decrease in raw materials cost.

Select one:

a. The aggregate supply curve shifts right; the aggregate demand curve is not affected; price level decreases; real GDP increases.

b. The aggregate supply curve shifts left; the aggregate demand curve is not affected; price level increases; real GDP decreases.

c. The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.

d. The aggregate demand curve shifts left; the aggregate supply curve is not affected; price level and real GDP decrease.