An economy is producing output $400 billion less than the natural level of output, and fiscal policymakers want to close this recessionary gap.

The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out. The marginal propensity to consume is 4 5, and the price level is completely fixed in the short run. In what direction and by how much must government spending change to close the recessionary gap? Explain your thinking.