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
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