The government purchases multiplier is larger in magnitude than the tax multiplier. This means that a dollar change in government purchases will have a larger effect on GDP as compared to a dollar change in the taxes. Can you explain this using the two formulas in a paragraph form? Also, suppose the government's national budget goes from a budget deficit in Year 1 to a budget surplus in Year 2. Does it mean that the government acted to raise taxes or cut government spending in Year 2? Are there any other explanations to this scenario