In the short-run, an increase in the price of raw materials will _{--------------------}the price level and _{--------------------}Real GDP. A)raise; not change B)raise; decrease C)lower; increase D)raise; increase E)lower; decrease

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In the short-run, an increase in the price of raw materials raises production costs, leading to a higher price level and a decrease in Real GDP due to reduced aggregate supply.

In the Short-Run, an Increase in the Price of Raw