Three Countries,X,Y,and Z Are Part of a Member Area Where

question 17

Multiple Choice

Three countries,X,Y,and Z are part of a member area where they have eliminated all barriers to trade such as tariffs,quotas,and non-tariff barriers like border restrictions,while at the same time keeping their own external tariffs against nonmembers.Such an area could be described as a(n) _____ area.

• A) regional
• B) spatial
• C) open trade
• D) embargo
• E) free trade

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Definitions:

Saving Exceeded Investment

A situation where the amount of savings in an economy surpasses the level of investment spending.

Long-Run Aggregate Supply

A concept in economics that represents the total quantity of goods and services that can be produced in an economy at a given overall price level and in a given time period, assuming all resources are fully employed.

Real Output

The total quantity of goods and services produced, adjusted for price changes and inflation, reflecting actual economic productivity.

Keynesian Range

A portion of the Keynesian aggregate supply curve where total production is influenced by changes in aggregate demand, leading to fluctuations in output and employment levels.