Karl Marx published:

Velocity is V, the quantity of money is M, the price level is P, and real GDP is Y. Which of the following formulas is correct?

A) Y = (P × M) ÷ V B) Y = V × M C) Y = (P + M) - V D) V = (P + Y) × M E) V = (P × Y) ÷ M

Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________

A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase