Section 4 1) Suppose economists observed that an increase in government spending 10 billion dollars raises (30pts) the real GDP by 30 billion dollars. a. If these economists ignore the possibility of crowding out, calculate the multiplier. b. Calculate the marginal propensity to consume (MPC). c. If this economy registers a deficit of $50 billion dollars, by how much should government expenditures change to set the economy back to equilibrium? a. b. C. 1121314 Next