Typed plzzzz And Asap I vll up vote and share positive feedback The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the governmentdecides to conduct fiscal policy by changing taxes to reduce the burden of this recession.Fiscal PolicyPrice Level150140130120110100908070605040300LRASASADAD80 160 240 320 400 480 560 640 720 800Real GDP (billions of dollars) Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign.a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium?400 billionb. If the MPC is 0.75, how much do taxes need to change to shift aggregate demand by the amount you found in part a?billionSuppose instead that the MPC is 0.5.c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium?billion.Aggregate demand needs to change by $billion and taxes need to change by $

The impact of change in aggregate demand due to the change in government spending is more than that…

The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by changing taxes to reduce the burden of this recession. Price Level 150 140 130 120 110 100 90 80 70 60 50 40 30 0 Fiscal Policy LRAS AS AD AD, 80 160 240 320 400 480 560 640 720 800 Real GDP (billions of dollars)