(Solved): The balanced budget multiplier For both political and macroeconomic reasons, governments are often ...

The balanced budget multiplier For both political and macroeconomic reasons, governments are often reluctant to run budget deficits. Here, we examine whether policy changes in G and T that maintain a balanced budget are macroeconomically neutral. Put another way, we examine whether it is possible to affect output through changes in G and T so that the government budget remains balanced. Using the following formula: 1 -0?) (00+ 1+ G-G?T), where ?? = autonomous consumption and c? = propensity to consume. Y= By how much does Y channge when G increases by one? AY=. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the character.)