If a government increases G by the same amount as it raises taxes, the aggregate output actually rises. Why is this? Suppose an economy has an equilibrium output of $2000, consisting of $1800 of consumption and $200 of investment. If government spending is set at $400, financed by a tax rate of 20 percent, what will happen to output? Assume, that at the beginning there was no G and T. The change of aggregate output due to AG The change of aggregate output due to AT Total change of aggregate output. Calculate both fiscal multipliers without taxes (not considering the tax rate)