Suppose the economy is in a recessionary gap, and the government reponds by conducting an expansionary fiscal policy. a. Suppose the marginal propensity to consume is 0.8. Calculate the effect of a $1,000 increase in government purchases on real GDP, and then calculate the effect of a $1,000 tax cut on real GDP. b. Why does a $1,000 tax cut generate a smaller multiplier effect than a $1,000 increase in government purchases?