In the Short Run, with Fixed Prices and No Imports

question 392

Multiple Choice

In the short run, with fixed prices and no imports and no income taxes, an increase in investment of
$100 billion

• A) decreases real GDP because of the decrease in induced expenditures.
• B) increases real GDP by less than $100 billion.
• C) increases real GDP by more than $100 billion.
• D) increases real GDP by $100 billion.

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Definitions:

Southern States

Refers to the group of states located in the southeastern and south-central regions of the United States, historically associated with the Confederacy during the Civil War.

Civil Liberties

Fundamental rights and freedoms protected by law from governmental interference or restriction, including freedom of speech, assembly, religion, and the right to privacy.

Disloyal Activities

Actions or behaviors that are considered unfaithful or treasonous to one's country or organization.

Ex Parte Milligan

A landmark U.S. Supreme Court case in 1866 that ruled it unconstitutional to subject civilians to military trial in areas where civilian courts were still operating.