Answer:
increase government spending by $90 billion
Explanation:
in order to reach full employment GDP level, the government should increase its spending by $90 billion. Total GDP increase = increase in government spending / government multiplier = $90 billion / (1 - 0.8) = $90 billion / 5 = $450 billion.
GDP will increase from $150 billion + $450 billion = $600 billion
