When the natural unemployment rate increases, the short-run Phillips curve ________ and the long-run Phillips curve ________.
A) shifts rightward; shifts rightward
B) does not shift; shifts leftward
C) shifts rightward; does not shift
D) shifts leftward; does not shift
E) shifts leftward; shifts rightward
Question 2
Which of the following would result in a positive externality?
A) A local government sets a maximum price on gasoline.
B) Taco Bell adds 15 new items to its dollar menu.
C) Medical research results in a cure for Ebola.
D) A solar panel manufacturer raises its prices due to increased demand.