Solve the following economic problems using the appropriate fiscal policy. Use the appropriate multiplier if needed. Also graph the original economy with the aggregate graph and show the response to fiscal policy.

1. ABCD Economy has a negative GDP gap of $500,000 and their unemployment is over their full employment number. They have recently cut taxes and it helped close their gap but they are still struggling. MPC IS .8

2. Barnardland has a CPI of 15%. Recently the positive GDP gap has been moved to $10 billion dollars and prices are growing throughout the economy.

3. The government of Lake Land has over subsidized businesses and they need to close a expansionary gap of $1,000,000.

4. Brookland is a bad place to live and their economy is struggling. They are in a recession and the government has little money to give to the people.

5. The supply chain is broken because businesses are out of money. What can the government of Creekland do?