I would greatly appreciate if you could complete the first 2 problems and show the work for them it would help me a lot!

Worksheet 21.1: Tax and Transfer Multiplier Answer the following questions to demonstrate your understanding of the spending multiplier. 1. A recessionary gap of $40 billion is present in the economy and MPC is 0.75. How could Congress close the tax using a change in taxes? The government wants to use a change in taxes to 2. close the gap in the economy. MPC is 0.S. CF45 SR45 How large is the gap What is the amount and direction (increase/decrease) of the change in taxes needed to close the gap? AD 159 750 RGDP - YOU The government wants to use a change in 3. LRAS transfer payments to close the gap in the economy. MPC is 0.9 How large is the gap? What is the amount and direction increase/decrease) of the change in transfer needed to close the gap? 35 10 RGOP-Y 1 128:1 4. Create a table showing the tax and transfer multiplier for each of the MPCs listed. MPC Tax/Transfer Multipler 0.5 0.75 0.8 0.9 @ 2015, BFW/Worth Publishers Section 4 Krugman's Economics for AP , 2c Teacher's Resource Materials