If a Country Resolves Its Corruption Issues That Had Inhibited

question 29

Multiple Choice

If a country resolves its corruption issues that had inhibited the ability of local businesses to be as productive as possible, it will impact its economy by

• A)increasing aggregate demand.
• B)decreasing aggregate demand.
• C)increasing aggregate supply.
• D)decreasing aggregate supply.

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Definitions:

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that removed tariff barriers between the nations.

GATT

The General Agreement on Tariffs and Trade, an international treaty that aimed to reduce tariffs and other trade barriers; precursor to the World Trade Organization.

Economists

Experts in the study of economics, focusing on the distribution, consumption, and production of goods and services.