The Economic Stimulus Act, which was passed by the middle of 2008 during the Bush administration, reduced taxes by $100 billion and increased government spending by $60 billion. If the MPC is 0.8, due to the increase in government spending, what is the increase in output using the oversimplified government expenditure multiplier? The Economic Stimulus Act, which was passed by the middle of 2008 during the Bush administration, reduced taxes by $100 billion and increased government spending by $60 billion. If the MPC is 0.8, due to the increase in government spending, what is the increase in output using the oversimplified government expenditure multiplier? $300 billion increase in output. $480 billion increase in output. $500 billion increase in output. $600 billion increase in output