A ________ exists when naturally occurring incentives encourage ...

[CharlieWard]

A ________ exists when naturally occurring incentives encourage sufficient numbers of people to act in a way that makes everybody worse off.
 
  Fill in the blank(s) with correct word

Question 2

In the short run, an increase in inflation by the Fed not matched by an increase in the expected inflation rate results in ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.
 
  A) no change; a downward shift
  B) a rightward shift; an upward shift
  C) a rightward shift; a downward shift
  D) no change; no change
  E) a leftward shift; an upward shift

[Awesome]

Answer to Question 1

collective action problem

Answer to Question 2

D

[CharlieWard]

Correct answers!

[Awesome]

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