ol- 4. The balanced budget multiplier For both political and macroeconomic reasons, governments are often reluctant to run budget deficits. Here, we examine whether policy changes in G and T that maintain a balanced budget are macroeconomically neutral. Put another way, we examine whether it is possible to affect output through changes in G and T so that the government budget remains balanced. Start from equation (3.8). a. By how much does Y increase when G increases by one unit? b. By how much does Y decrease when T increases by one unit? DLOW c. Why are your answers to (a) and (b) different