If and and respectively represent change in government expenditure and change in taxes, the value of the multiplier would be equal to
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2 marks, −1MacroeconomicsKeynesian cross and the multiplierThe balanced budget multiplierEasyabout 1 min
JNU SIS 2016 Question 24: Keynesian cross and the multiplier
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If Δ G = Δ T and Δ G and Δ T respectively represent change in government expenditure and change in taxes, the value of the multiplier would be equal to (A) one (B) zero (C) Δ G (D) Δ G + Δ T
Also written as: If Delta G = Delta T and Delta G and Delta T respectively represent change in government expenditure and change in taxes, the value of the multiplier would be equal to
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
What this question tests
This question is on The balanced budget multiplier, part of Keynesian cross and the multiplier in Macroeconomics.
Why raising spending and taxes by the same amount still raises income.
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