please help: \"Assume that Canadians\' taxes, imports, and saving behavior means

Question

please help: "Assume that Canadians' taxes, imports, and saving behavior means that .60 of any change in income will survive the leakages of tax, import spending, and saving. With this information you can calculate the multiplier at work in the Canadian economy.
Assume also that Canada's potential GDP = $800b and that actual GDP = $850b. With this information you can calculate Canada's GDP gap.

What would be the change in first-round spending that will bring the economy to full employment -that is, what is the appropriate dosage of additional spending that will close the GDP gap?

Desired initial change in spending = negative $____billion
[Answer with a whole number: no dollar sign and no negative sign] "

Explanation / Answer

So to find the change in spending needed to close the gdp gap total increase in gdp = multiplier * change in initial spending The GDP gap is 800 - 850 = -50, this is by how much we want to change GDP The multiplier is equal to 1/1-MPC, here the MPC = .6 so, 1/1-.6 = 1/.4 = 2.5 So now, change in gdp (-50) = multiplier (2.5) * change in initial spending (x) -50 = 2.5x, solve for x -20 = x So the desired change in initial spending is -20

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