need help please show step by step and the correct formula on how to do the following exercises

Certainly! Let's tackle these questions one at a time, focusing on the key concepts and formulas

Question

Topic: Multiplier macroeconomics Question 1 Given: . Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. 1a) What is the value of the initial impact on real GDP? 1b) What is the value of the total impact on real GDP? Question 2 Given: Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300 billion. 2a) How much must taxes be increased to achieve this goal? ( The goal is given in question 2 given information)

          Topic: Multiplier macroeconomics
Question 1 Given: . Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion.

1a) What is the value of the initial impact on real GDP?
1b) What is the value of the total impact on real GDP?

Question 2 Given: Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300 billion. 
2a) How much must taxes be increased to achieve this goal? ( The goal is given in question 2 given information)

Added by Christina C.

Question

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