A new Mexican restaurant opens in the city of Manchester. The other restaurant owners are not happy about this new restaurant because they are experiencing what externality?

The increase in the number of sellers of a good would

A. move its supply curve to the left. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. move its supply curve to the right. D. cause a movement along the supply curve to a (higher price, higher quantity) point.

The self-correcting property of the economy means that output gaps are eventually eliminated by:

A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.