How much will GDP change if the governmet increases spending by 80 M?

The change in GDP resulting from an increase in government spending can be estimated using the multiplier effect. If we assume a marginal propensity to consume (MPC) of, say, 0.8, the spending multiplier would be 1 / (1 - MPC), which equals 5. Therefore, an increase in government spending by $80 million could potentially increase GDP by $400 million ($80 million x 5) if the multiplier effect is fully realized.