Given below information:

Consumption = $50 billion
Government spending = $30 billion
Tax revenues = $25 billion
Investment = $10 billion
MPC = 0.8 Import = $7 billion
Export = $35 billion
Crowding out effect = $7 billion

Questions:

A). The government would like to stimulate the economy to the level before the COVID-19, what should government do? If the government decide to using spending option, should the government increase or decrease government spending and by how much? If the government decides to use tax, should the government increase or decrease the tax and by how much?

B). In your opinion, the government should try stability the economy and why?