Using Fiscal Multipliers. Suppose that during a recession a country wishes to increase its GDP by 100. The MPC is 0.8. a. Using the government spending multiplier, by how much should government...

Using Fiscal Multipliers. Suppose that during a recession a country wishes to increase its GDP by 100. The MPC is 0.8.

a. Using the government spending multiplier, by how much should government spending be increased? b. Using the tax multiplier, by how much should taxes be decreased?