Assume that a hypothetical economy with an MPC of 0.8 is experiencing a severe recession. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $40...

Assume that a hypothetical economy with an MPC of 0.8 is experiencing a severe recession.
a.

 By how much would government spending have to rise to shift the aggregate demand curve rightward by $40 billion?

Instructions: Round your answer to two decimal places.

$ ( ) billion

b. How large a tax cut would be needed to achieve the same increase in aggregate demand?

Instructions: Round your answer to two decimal places. Enter a positive value.

$(  ) billion

c. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.

Increase spending by $( ) billion and increase taxes by $( )  billion.