balanced budget multiplier

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Balanced Budget Multiplier


balanced budget multiplier



References in periodicals archive ?
Section III examines the balanced budget multiplier as well as derives a graphical illustration.
Since the aggregate supply function will play a significant role on evaluating the balanced budget multiplier, we now turn to derive this function in detail.
It indicates that an increase in government expenditures fully covered by taxes will raise the national income, that is, the balanced budget multiplier is positive.
The balanced budget multiplier is unambiguously less than the conventional government spending multiplier as long as the tax rate is less than 1.