Globalization in the past decade has led to a(n):
A)upward-sloping short-run Phillips curve.
B)vertical short-run Phillips curve.
C)flat short-run Phillips curve.
D)backward short-run Phillips curve.

Question

Quizplus · Accepted Answer

Globalization in the past decade has contributed to a flatter short-run Phillips curve, primarily because it has allowed for the easier flow of goods, services, and labor across borders. This has helped to keep inflation low even when unemployment rates decrease, as companies can source cheaper inputs or labor from abroad, reducing the pressure on domestic prices.

Globalization in the Past Decade Has Led to A(n)