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BALANCED-BUDGET MULTIPLIER:A measure of the change in aggregate production caused by equal changes in government purchases and taxes. The balanced-budget multiplier is equal to one, meaning that the multiplier effect of a change in taxes offsets all but the initial production triggered by the change in government purchases. This multiplier is the combination of the expenditures multiplier, which measures the change in aggregate production caused by changes in an autonomous aggregate expenditure, and the tax multiplier which measures the change in aggregate production caused by changes in taxes.
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What is the balanced budget multiplier formula and how does it impact government spending and economic stability?
The balanced budget multiplier formula is 1. It means that for every dollar increase in government spending, there is an equal increase in taxes to balance the budget. This can impact economic stability by potentially reducing the overall impact of government spending on the economy.
Economists have proposed the rule that the cyclically adjusted budget deficit always be balanced Compare this proposal to a strict balanced-budget rule Which is preferable?
balanced budget
An accurate statement about achieving a balanced budget would be that?
most states require a balanced budget for state spending
How does the concept of a balanced budget apply to state government?
Only the operating budget must be balanced in state government.
What occurs when spending equals revenue?
The answer is Balanced budget
What is the balanced budget multiplier formula and how does it impact government spending and economic stability?
The balanced budget multiplier formula is 1. It means that for every dollar increase in government spending, there is an equal increase in taxes to balance the budget. This can impact economic stability by potentially reducing the overall impact of government spending on the economy.
Did Sam Houston have a balanced budget?
Yes, he did have a balanced budget.
Economists have proposed the rule that the cyclically adjusted budget deficit always be balanced Compare this proposal to a strict balanced-budget rule Which is preferable?
balanced budget
What phase of the budget is to submit a balanced presidents budget?
Budget & Execution
An accurate statement about achieving a balanced budget would be that?
most states require a balanced budget for state spending
How does the concept of a balanced budget apply to state government?
Only the operating budget must be balanced in state government.
What is a sentence for balanced budget?
The oversight committee has been working on the next balanced budget for over three weeks.
What phase is to submit a balanced presidents budget?
budget & execution
What product of the phase is to submit a balanced president's budget?
Budget & Execution
Why balanced budget multiplier is equal to 1?
The balanced budget multiplier is equal to 1 because when the government increases spending and simultaneously raises taxes by the same amount, the net effect on aggregate demand remains unchanged. The increase in government spending directly boosts demand, while the tax increase reduces disposable income and consumption. However, the decrease in consumption does not fully offset the increase in spending, as the government spending injects the funds directly into the economy. Therefore, for every dollar spent, there is a one-to-one effect on overall economic output.
What is a budget that is often changed at the end of a reporting period?
a balanced budget
What best describes a budget with equal expenditures and revenue?
balanced budget
