(Solved): please help. thank you :) Ine graph Delow depicts an economy where a decine in aggregate demand nas ...

Ine graph Delow depicts an economy where a decine in aggregate demand nas caused a recession. Assume the government decides to conduct fiscal policy by changing taxes to reduce the burden of this recession. Fiscal Policy 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? \( \$ \quad \) billion b. If the MPC is 0.6, how much do taxes need to change to shift aggregate demand by the amount you found in part a? 5 billion Suppose instead that the MPC is \( 0.96 \). c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by \( \$ \) bilition and taxes need to change by \( \$ \) billion.