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After the attacks on September 11, 2001, U.S. businesses began to spend more on security, and they continue to do so today. For example, airlines

After the attacks on September 11, 2001, U.S. businesses began to spend more on security, and they continue to do so today. For example, airlines and package delivery services run more background checks on their employees, and office buildings employ more security than they did before the attack.

What impact did these decisions have on real GDP in the short run? What trade-offs had to be made in the economy?

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