A. Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC = .80. Make sure to show and use the Government Spending Multiplier.

B. Calculate and graph what happens to T, C, AD, GDP, and Prices if the President raises taxes by 100 billion and the MPC = .80. Make sure to show and use the Tax Multiplier.

C. Calculate and graph what happens to AD, GDP and Prices if the government raises both taxes and government spending by 200 billion and the MPC is equal to .75. Make sure to show and use both the Government Spending and Tax Multipliers.