this question is from macroeconomics

Question No.3 a)- An economy is operating with output $300 billion below its natural rate and scal policymakers want to close this recessionary gap. The economy is facing a deep recession and private sector investment is severely discouraged. The marginal propensity to consume is 0.75, and the price level is completely xed in the short run. (i). In what direction and by how much would government spending need to change to close the recessionary gap? (ii). How your answer in part (i) will change in case of a mild recession? b)- Suppose quotes for the dollar-pound ($f) exchange rate are $1.50 per pound in New York, and $1.55 per pound in Tokyo. Demonstrate how arbitragers will capitalize on the difference in exchange rates and also discuss how arbitrage activity will affect the dollar price of the pound in New York and Tokyo