The Whereami County government has cut its spending by $4 5 million and raised taxes on County residents by $3 5

Question

The Whereami County government has cut its spending by $4.5 million and raised taxes on County residents by $3.5

million in order to close a growing budget deficit. If the local marginal propensity to consume is 0.9, by how much has local GDP decreased because of these changes to government spending and taxes?

Macroeconomics