Answer: This is a balanced equation
An easy way to figure out if the equation is balanced or not is that each element in the R.H.S should be equal to the element in the L.H.S
R.H.S L.H.S
Mg = 1 Mg = 1
O = 1 O = 1
Li = 2 Li = 2
Cl = 2 Cl = 2
As both of them have equal number of elements they are balanced.
