Real GDP (billions of dollars} Instructions: Round youranswers to 2 decimal places. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its longrun equilibrium? '15 billion b. lfthe MPC is 0.?5, how much do taxes need to change to shift aggregate demand bythe amount you found in part a? $5 billion Suppose instead that the MPC is 0.61 c. Hon.r much does aggregate demand and taxes neec to change to restore the economy to its longrun equilibrium? Aggregate demand needs to change by 5- billion and taxes need to change by 99 billion. The graph below depicts an economy where an increase in aggregate demand has caused inflation. Assume the government decides to conduct fiscal policy by changing taxes to bring inflation under control. Fiscal Policy 160 LRAS 150 AS 140 130 120 110 Price Level 8 8 8 828 AD AD 40 80 160 240 320 400 480 560 640 720 800 Real GDP (hillinne of dollars)