A(n)________________ Is a Group of Nations with Common Monetary and Fiscal

question 1

Multiple Choice

A(n) ________________ is a group of nations with common monetary and fiscal policies in addition to the characteristics of a common market.

• A)Preferential trade arrangement
• B)Economic union
• C)Common market
• D)Free trade area

---

Definitions:

Cost-Push Inflation

Rising costs of doing business push up prices.

Open-Market Operations

Activities undertaken by central banks to buy or sell government securities in the open market to influence the money supply and interest rates.

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.

Business Cycle Trough

The phase in the business cycle where economic activity is at its lowest point, preceding a recovery or expansion period.