1. Apply the multiplier concept to this scenario : Recall that tax cuts return money to individuals who earn an income (a person's disposable income grows so she/he can either spend it or save it). Suppose that policy-makers knew that real GDP fell short of potential full employment GDP by $40 billion dollars. If the marginal propensity to consume is 0.75, what is the dollar amount of the tax cut is needed to return GDP to its full employment level? (you should calculate one number. Show your work).