Consider an economy with a current equilibrium national income of $2,000 billion and a full-employment national income of $2,300 billion. If the MPS in this economy is 0.2, please answer the following questions 1. What type of gap is this economy facing? 2. Illustrate on a graph the gap this economy is experiencing. Make sure to label the axis and each line you draw as well as mark the relevant values and notations on the graph. 3. By how much and in what direction would government spending alone have to change to close the gap you identified? Please show all your work. 4. By how much and in what direction would taxes alone have to be changed to close the gap you identified? Please show all your work 5. What is the size of the gap this economy is facing? 6. By how much would government spending have to change to close the gap you identified after a $10 billion tax cut is implemented? Please show all your work 7. Would a $40 billion increase in government spending coupled with a $20 billion dollar tax increase close the gap the economy is experiencing? Please show all your work, 8. How will the federal budget be affected by the fiscal policy measures proposed in question 17? Please show your work and specify the size and type of budget change