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 decrease in taxes, what is the increase in GDP using the simple tax 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 decrease in taxes, what is the increase in GDP using the simple tax multiplier? $300 billion increase in GDP. $400 billion increase in GDP. $500 billion increase in GDP. $800 billion increase in GDP