In the following case, either a recessionary or inflationary gap exists. Assume that the aggregate supply curve is horizontal, so that the change in real GDP arising from a shift of the aggregate demand curve equals the size of the shift of the curve. Calculate the magnitude of both the change in government purchases of goods and services and the change in government transfers necessary to close the gap. c. Real GDP equals $180 billion, potential output equals $100 billion, and the marginal propensity to consume is 0.8. The economy faces gap. To close the gap, government spending and/or transfers would need to . Spending would need to change by $ billion (in absolute value) to close the gap. Transfers would need to change by $ billion (in absolute value) to close the gap.