4. Suppose the output gap is $2 trillion and the marginal propensity to consume is 0.75. How large an increase in government spending would be required to close the output gap? If instead the gap is closed by changing lump sum (fixed) taxes, how large a tax cut would be required to close the gap? Why is the Government spending multiplier different from the (Lump Sum) Tax multiplier?

assume that t = 0