The balanced budget multiplier tells us that Y will increase by 100. Suppose a different country has the following savings function, planned investment, government spending and taxes. GDP includes goods produced within the US, even if they were produced by factors of production owned by foreigners. GNP includes the income from anything owned by US citizens, even if it is located in another country. Structural unemployment results from a mis-match between the skills of available workers and the skills needed by firms.
Cyclical unemployment is the temporary unemployment caused by recessions.
Crowding-out occurs when government borrowing reduces that amount of saving available for private investment or private spending. Higher government deficits crowd out private investment. The mechanism by which this works in interest rates. When the government borrows money, it increases the demand for loanable funds, bidding up their price. Real Balance Effect.