Q: a tax cut along with a reduction in government expenditure to maintain budget balance will( the options are shown in the picture)

The only thing I am sure is that this question is concerend with multiplier

I have some confusion. 1: the government wants to maintain budget balance( budget balance= tax revenue- expenditure) So I would assume that reduction in tax and expenditure must be same to keep the equation constant. Secondly, as shown in the options, I do not the the initial state of output( i.e. it is expansionary or contractionary) how can I answer this question without know the innitial output. I think it makes more sense if the question tells me it is in expansionary or contractionary currently.

reduce the size of the contractionary gap have no effect on output expand the size of the expansionary gap expand the size of the contractionary gap insufficient information to answer the