Please help!!!! i need little help in economics

Here is a simpler explanation with the same answer. You can see you need to decrease the GDP by $270 billion because it is above full employment levels. The multiplier is 10 because 1/MPS is the multiplier, and MPS is .1 Since a decrease in spending by $27 billion isn't a choice, you need to look at increases in taxes. However, when increasing taxes only the part that is spent counts on the multiplier, not the part which is saved by households. If you increase taxes by $30 billion then only $27 billion of that would have been spent. THe other $3 billion would have been saved, so the fact that the government now has it makes no difference. The government has essentially prevented $27 billion from being spent, so with the multiplier it has reduced the real GDP by $270 billion.