Globalization and trade:
A)Can be seen as a source of productivity enhancing technological progress
B)Shifts both the short-run and long-run aggregate supply curves to the right
C)Provide an opportunity to reduce inflation permanently
D)All of the answers provided are correct

Question

Quizplus · Accepted Answer

All of the answers provided are correct. Globalization and trade can lead to productivity enhancements through technological progress, which can shift both short- and long-run aggregate supply curves to the right. In addition, increased competition from international trade can help reduce inflation permanently by forcing firms to cut costs and improve efficiency.

Globalization and Trade