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Macroeconomic externality occurs when outcomes at the macroeconomic level are different from the outcomes at the microeconomic level.

An externality is a cost or benefit incurred or received by a producer that is not incurred or received financially by that producer. Externalities can be both positive and negative, and they can arise from the production or consumption of a good or service. The costs and benefits can be private (to an individual or an organization) or social (affecting society as a whole).

Natural externalities are typically environmental in nature, such as natural resources or public health. A negative externality, for example, is a business that causes pollution that reduces the property values or health of people in the surrounding area. Actions that reduce disease transmission or avoid the use of lawn treatments that runoff into rivers and thus contribute to excessive plant growth in lakes are examples of positive externalities. Externalities are not the same as parkland donations or open-source software.

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