Problem 2 (2 x 7.5 = 15 points) Assume that the economy from fictitious country Unterbadand has a MPC of 0.875 is experiencing severe inflationary pressure. It is estimated that a shift to the left of $200 billion in the total Aggregate Demand is needed. a) By how much should the government change the government spending? (mention clearly whether the government spending should be increased or decreased) b) By how much should the government change the taxes? (mention dearly whether the taxes should be increased or decreased) Answer (show calculations)