Problem
(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $12 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $13 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.