Help with the following exercises please show formula and step by step 1)  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? 2. Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300billion. By how much must taxes be increased to achieve this goal?

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