Assume that a hypothetical economy with an MPC of 0.9 is experiencing severe recession.

a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?
How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion.
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.

Increase spending by $ billion.
Increase taxes by $ billion.