I need help with this assignment! Thank you :)

Assume the US economy is facing the following conditions:

• GDP = $14.5 trillion
• Unemployment = 6.8%
• Inflation = 1.7%
• MPC = .75
• Velocity=8
• NRU=5%

Answer the following questions based on the above information. Show your work.

1. How much money needs to be added (or subtracted) from this economy to achieve full employment?
2. Explain how the Federal Reserve could use the Reserve Ratio to increase (or decrease) the money supply.
3. Explain how the Federal Reserve could use the Discount Rate to increase (or decrease) the money supply.
4. Explain the Open Market Operation in which the Federal Reserve should engage to change the money supply. Be sure to explain whether the Fed should buy or sell government securities.

Answer the same 4 questions above but with the following data:

• GDP = $14.5 trillion
• Unemployment = 4.2%
• Inflation = 5.0%
• MPC = .75
• Velocity=8
• NRU=5%