Please include introduction, body, conclusion and your opinion with examples in the answer.

Case)

Understanding the impact of changes in government purchases on output is a key part of fiscal policy analysis, and the question periodically takes center stage as economies move through stages of business and political cycles. The implementation of fiscal stimulus packages across OECD countries in the early phase of the 2008-2009 crisis spurred a lot of work on the size of the government spending multiplier associated with increases in government purchases.1 A few years later, the mirror-image question the effect of contractionary fiscal policy became the center of attention as the rapid rise in government debt levels led to a swift shift to fiscal consolidation, particularly in continental Europe.2 Unfortunately, despite intense scrutiny, the range of estimates for the government spending multiplier remains wide, with estimates lying between 0.5 and 2

Q)Using the above case; Analyzehow do the values of the tax multiplier and the government spending multiplier change as the MPC increases? discuss why the multipliers change. If the MPC were 0, what would the government spending and tax multipliers equal? If the MPC were 1, what would the government spending and tax multipliers equal?