If the marginal propensity to consume is 0.5 how much would government spending have to rise to increase output by 1000 billion?

If the marginal propensity to consume (MPC) is 0.5, the spending multiplier can be calculated as ( \frac{1}{1 - MPC} = \frac{1}{1 - 0.5} = 2 ). To increase output by 1000 billion, the government would need to increase spending by ( \frac{1000 \text{ billion}}{2} = 500 \text{ billion} ). Therefore, government spending would need to rise by 500 billion to achieve the desired increase in output.