Please answer all 3 questions.

1. A. A major recession is looming. Turning to discretionary fiscal policy, Congress might vote to __________(what?)________________?

B. The economy is at very low unemployment rates and inflation rates are increasing. Turning to discretionary fiscal policy, Congress might vote to _____________(what?)___________________.

2. If Government Spending increases by $100 B and we're operating on the flat ("Keynesian") range of Aggregate Supply, will real GDP increase by (a) less than $100B, (b) $100 B, or (c) more than $100 B? (a multiple-choice question)

3. In Paynia the marginal propensity to consume is .6. Times are tough and the economy is operating on the flat ("Keynesian") range of the Aggregate Supply Curve. If Congress wished to increase Aggregate Demand by $500 B, how much would it need to raise Government Spending, all else constant?