14.Suppose that the MPS = .2 and the government is interested in raising the level of output in the economy by $100 billion. Calculate how much the government would have to spend to achieve this objective.
15.Assume that the government spending multiplier is equal to 4. Calculate the tax multiplier from this information.
16.Please explain what is an Automatic Stabilizer. Explain how some government tax revenue and spending can depend on the state of the economy..