(SHOW ALL THE WORK) Assume an economy has an MPC of 0.40 and the government increases spending on infrastructure by $100

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(SHOW ALL THE WORK) Assume an economy has an MPC of 0.40 and the government increases spending on infrastructure by $100

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(SHOW ALL THE WORK)
Assume an economy has an MPC of 0.40 and the governmentincreases spending on infrastructure by $100 billion.
a. What is the value of initial impact on real GDP?
b. What is the value of the total impact on real GDP?
c. How much must taxes be reduced in order to achieve thesame(total) impact as your answer in part b?
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