In the nation of Rivia the long-run macro equilibrium (LAS) is equal to $320 Billion, the current short-run macro equilibrium is equal to $280 Billion. We have also observed that for every dollar of earned income consumers spend $.80 of it. (5 Marks)

1. Calculate the change in government spending that is needed to move the economy back to Y*. (3 Marks)
2. Include a graph. The graph should include the current economic situation and also when the it has been fixed. (Only one graph is needed). (2 Marks)