Answer:
The government spending will be less than $5 billion.
Explanation:
The government spending will be less than $5 billion because the concept of spending multiplier exhibits that if the government inject a certain amount in the economy then the economy will become richer than the injected amount. For example, the government assign $100 for a project and out of $100, it pays $50 to the labor. Further, the labor save $10 and spend $40. Here, the economy is richer with $100 + $40 = $140. Therefore, if the government expect to rise the AD by $5 billion then the government spending should be lower than $ 5 billion.
