If a government increases G by the same amount as it raises taxes, the aggregate output actually rises. lWhy is this? Suppose an economy has an equilibrium output of 3000, consisting of 1800 of consumption and E1200 of investment. If government spending is set at 450, financed by a tax of rate of 450 ('I 5 percent) , what will happen to output? Assume, that at the beginning there was no G and T. The change of aggregate output due to as The change of aggregate output due to AT Total change of aggregate output. Calculate both scal multipliers without taxes (not considering the tax rate)