Refer to Exhibit 6. Who has the comparative advantage in the production of good Y?

To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a specific tax equal to the marginal cost of producing the good

Indicate whether the statement is true or false

If aggregate demand equals aggregate supply, macroeconomic equilibrium exists

a. True b. False Indicate whether the statement is true or false