When Equilibrium GDP Is Greater Than Potential GDP, Jobs Are

question 115

True/False

When equilibrium GDP is greater than potential GDP, jobs are plentiful and labor is in great demand.

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Definitions:

MSB

Marginal Social Benefit, referring to the additional benefit to society as a whole from consuming one more unit of a good.

MSC

MSC, or Marginal Social Cost, is the total cost to society of producing one additional unit of a good or service, including both private costs and externalities.

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on living organisms and ecosystems.

Emissions Tax

An emissions tax is designed to reduce environmental harm by charging a fee for the emission of pollutants, incentivizing businesses and individuals to decrease their environmental impact.