(Answered) The economy is in recession shifting the ad curve rightward

Economics

The economy is in recession. Shifting the AD curve rightward by $200 billion would end the recession.

1. If MPC = 0.8 and there is no crowding out, how much should Congress increase G to end the recession?

2. If there is crowding out, will Congress need to increase G more or less than this amount?

Please explain with both text and numbers

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Business Economics, Economics

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