4. Deficits in new classical economics Kevin lives in the fictional country of Profitopia, which raises government revenue by taxing everyone the same amount. The government of Profitopia has just implemented a tax cut that reduces annual taxes by $4,880 per person. However, government spending has not changed, nor is it likely change in the future. The tax cut has raised Kevin's income by $4,880. If Kevin acts according to the prediction of new classical economics (and doesn't plan to leave Profitopia), his saving is likely to increase by . Suppose that instead of cutting taxes while keeping its spending the same, the government did the opposite: it increased its spending by $4,880 per person while keeping taxes the same. If everyone in Profitopia acted like Kevin, the likely increase in aggregate demand would be per person