How expansionary and fiscal policies work

Expansionary fiscal policy-

The congress has decided to fix the economic problem of the deflationary gap of 1000 units in the GDP. The congress can either stimulate the economy in 2 ways, by either, raising government spending or cutting taxes. The decision is to cut taxes. The amount that the congress has to cut taxes by to stimulate the economy enough to full employment is given in the equation where the MPC, marginal propensity to consume is .8. The MPC is a function of for every dollar that consumers have, they will spend 80cents and will save 20cents such the MPC is .8. From this number you can derive the TXM tax multiplier which will tell you how much to cut taxes or raise taxes by to affect the GDP. How the multipliers effect the total GDP, a change in aggregate expenditures leads to a larger change in equilibrium in the GDP. The multiplier effect follows from to facts. First the economy supports repetitive, continuous flow of expenditures and income through dollars are spent...