e. In a given economy with an MPC of 0.8, the equilibrium GDP equals $480,000 and the potential GDP equals $670,000. How much would G have to change in order to close the recessionary gap? f. What will the numerical value for the balanced budget multiplier always be? g. If real GDP is greater than the aggregate expenditures, what should be done to production to get them to equal one another? Will savings or Ig be greater in this case?
