The magnitude of the government expenditure multiplier is smaller than the magnitude of the tax multiplier.
This is the term that is used to refer to the impact of the change in the income in the economy of a place given that the government of the place now has a change in the way that they carry out their expenditure. This is denoted by the term KG.
The government expenditure multiplier has the magnitude that is known to be smaller than the magnitude of the tax multiplier. It tells us how much the output of the nation rises given that there is a change in spending.
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