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The balanced budget multiplierFor both political and macroeconomic reasons, governments are often reluctant to run budget deficits. Here, we examinewhether 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 remainsbalanced.Using the following formula:Y = (1)/((1 - c1))(c0 i G - c1T), where c0 = autonomous consumption and c1 = propen
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