8. Consider the following scenario: Imagine that those were the indicators for the U.S. Economy at the stated time, Based on the data below, this economy must be facing a, has the same problems we are Indicator Estimates currently facing Unemployment Rate ( Oct. 2002) 7.8% b. must have structural but no cyclical Inflation rate ( Oct 2002) 5.2% unemployment Real GDP growth 0.7% c. The indicators are close to their goals, Government Spending (planned) $1600 billion d. Uncontrollables must be high Government Revenues ( planned) $ 1200 billion Interest Payments on the debt $ 220 billion National Debt $ 8 trillion Mpc ..... 0.4 9. Suppose the economy is currently operating at a level of $5,400 billions. . Assume further that potential output (Yf) is $5000 billion . Which of the following would be necessary to close this inflationary gap if the mpe - 0.75 a. Raise taxes by $400 billion b. Increase spending by $ 400 billion . Decrease spending by $100 billion d. Increase spending by $100 billion KS 11. Which of the following groupings contains a terto which does not belong? a. Taxation,, deficit spending, crowding out b. Social Security, welfare, government purchases c.mpc, mps, multiplier d. balanced budget, surplus budget, deficits 12. Of the following, the most liquid definition of money is a. M2 b..L c. M3 d. Mo