(i had to write ten words for coursehero to submit it)

Question 2 (20 points) (10 points) Explain why the tax multiplier is different from the government purchases multiplier, in both sign and relative magnitude. (10 points) Suppose that the current equilibrium GDP is $14.5 trillion, and that potential GDP is $14.4 trillion. Determine what the government needs to do in terms of changing the government expenditure and the taxes. Will changing government purchases by $200 billion, or changing taxes by $200 billion, restore the economy to potential GDP? Explain