Please help with 1-3. I will leave a VERY good review, thank you

1. Assume that the Marginal Propensity to Consume (MPC) is 0.8 and that $20 trillion of Real GDP is currently demanded. The government wants to increase the Real GDP demanded to $21 trillion at the given price level. By how much would you advise the government to increase its purchases to achieve this goal? How did you arrive at your answer - please show your work to earn points. 2. Suppose that consumption equals $500 billion when the disposable income is $0 and that each increase of $100 billion in disposable income causes consumption to increase by $70 billion. a. Draw a graph of the consumption function using this information. The axes must be labeled correctly, and the consumption function should have at least two points on the graph (correct coordinates). b. What is the Marginal Propensity to Consume in this economy? How did you arrive at your answer? Please show your work. I 3. Suppose the economy is in long-run equilibrium. a. Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium (call it point A). Do not forget to include both long-run and short run aggregate supply graphs. Your axes must be labeled correctly. b. The economy faces a credit crunch brought about by a housing market crash. This lowers investment spending. Show graphically what would happen to the output and the price level as the economy moves from the initial equilibrium to the new short-run equilibrium (call it point B). Explain, in your own words, what happens to the price level and output in the short run due to the event described above. c. How would this economy's price level and output stabilize in the long run (assume no policy interventions)? Label the long-run equilibrium as point C. Explain in your own words how did this economy come back to the long-run equilibrium