Solve please

Edit View History Bookmarks Tools Window Help In X MindTap - Cengage Learning X New Tab X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentid=583264245 CENGAGE | MINDTAP Aplia Homework Fiscal Policy Attempts Average 1/2 2. Discretionary fiscal policy and multiplier effects Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.8. The following graph shows the aggregate demand curves (AD, and AD2), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS). The economy is currently at point A. (?) LRAS 136 BRAD 132 128 PRICE LEVEL 124 120 AD. 900 400 500 700 200 203 1600 REAL GDP (Billions of dollars) The economy is currently experiencing gap of s billion. In order to close this gap, one option would be for the government to government purchases by s billion (assuming net taxes do not change)