Country X's long run potential full employment level of Real GDP is estimated to be $21,300,000. However, the current actual Real GDP in country X stands at $19,000,000.

Additional data on spending habits shows consumers in country X consume $0.90 out of every additional $1 income they receive.

Answer the following questions based on the above information.

I. Is Country X in a recessionary or an inflationary (Real GDP) gap? Briefly explain your answer.

II. What is the dollar value of the GDP gap? $________________________________

III. Calculate country X's Marginal Propensity to Consume (MPC), and Marginal Propensity to Save (MPS)?

IV. If MPC is estimated to be 89% (0.89), calculate country X's income multiplier.

V. Explain what the income multiplier value equal to, say, 7.5 means.

VI. Suppose country X faces a recessionary Real GDP gap equal to $2,300,000, and the income multiplier is 15. By how much should "Autonomous consumption" (i.e., spending) increase to close the $2,300,000 recessionary Real GDP gap to help the economy reach full employment?