Globalization and Trade

question 75

Multiple Choice

Globalization and trade:

• A) reduce inflation in the short run but not in the long run.
• B) reduce inflation in the short run and in the long run.
• C) increase inflation in the short run but not in the long run.
• D) reduce inflation in the short run but increase inflation in the long run.

---

Definitions:

Indifference Curves

Graphical representations in microeconomics showing different combinations of two goods that provide the same level of satisfaction to a consumer.

Slope

The measure of the steepness, incline, or grade of a linear graph, representing the ratio of the vertical change to the horizontal change between two points on the line.

Indifference Curves

Graphical representations in economics showing different combinations of two goods that provide the same level of satisfaction or utility to a consumer.

L-shaped

Referring to a graph shape, usually indicative of certain economic recovery patterns, representing a rapid fall followed by a prolonged period of stagnation.