Question: Using Table 10.1 and the formulas and numbers given in the text for the multiplier and tax multiplier, calculate the effect on equilibrium GDP of

Using Table 10.1 and the formulas and numbers given in the text for the multiplier and tax multiplier, calculate the effect on equilibrium GDP of a government spending level of 100 combined with a tax level of 100.

What does this imply about the impact of a balanced government budget on GDP, compared to government spending alone?

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