Suppose GDP falls by 5%, leading to a GDP gap of about 5% A. Using Okun's Law, what is the expected change in cyclical unemployment? B. Suppose the government decides to spend 50 million dollars to increase employment. After that money works its way through the economy. how much does total spending increase? If the savings rate is 10% (marginal propensity to consume is 90%) D. If the government wanted to get the same stimulus using direct payments to tax payers, how much would they need to send to the population (in total)? E. Suppose the Federal Reserve bought 50 million in bonds off bank balance sheets If the required reserve ratio is 5% and there are no excess reserves, what is the change in total money supply? F. (Extra Credit) Discuss the pro's and con's between the policies described in C. D. and E