Given the following date for a given economy:

GDP is in equilibrium at $1,000B.

Potential GDP is $950B

MPC in the economy is .7

i) Is this economy in a recessionary or inflationary gap?

ii) How much does the government need to adjust their spending to get this economy to potential GDP?

You must show your math and process of getting to the answer. Just having the correct answer will get you no points.

If your multiplier or answer has decimals, round to the hundredths place or two decimal places.