The economy's money supply curve is vertical

If an artisan sells handmade jewelry at a craft fair

A. and does not report the income earned to the Internal Revenue Service, GDP is understated. B. and does not report the income earned to the Internal Revenue Service, GDP is overstated. C. and reports the income earned to the Internal Revenue Service, GDP is understated. D. and reports the income earned to the Internal Revenue Service, GDP is overstated.

When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a $10 billion increase in investment spending will cause the equilibrium output to rise by:

A. $5 billion. B. $10 billion. C. $20 billion. D. $40 billion.