(Part A) Given that there is an inflationary GP of 800 Billion
dollars and we have an MPC=0.75, calculate the amount of spending
that would be necessary to achieve FE-GDP (Part B) Using the
calculations from (Part A) show the results on the AE and AD/AS
graphs. Make sure to use calculations when labeling the graphs.
(Part C) What could the FED do in order to alleviate this? Explain
and illustrate your answer in the money market.