The balanced budget multiplier

An exam question from David Henderson.  It says:

To wit, an equal increase in government expenditures and taxes leads to an increase in national output equal to the additional government expenditures and taxes. Mr. Samuelson, et al., gives the notion a scientific aura by packaging it in equations and graphs.

Let us assume that government has some utility to voters. First, since the Senate is not selected with proportional voting, right away we have to lower the minimal utility of government. From that low bar, we ask, could we gain from more or less government on the margin. The EU parliament(a fair voing system) could likely spend more and create more utility. Since America eschews Senate democracy, I would suspect that local government has greater utility. Local government spends about 10% of GDP.

Congress spends 25% of GDP and deliberately denies fair Senate elections. I suspect that at this level of large, undemocratic government, Congress has very low utility. The market agrees, actually, buyers of Congressional goods hold Congress in lower esteem than used car salesmen.