Calculate the total change in spending because of an initial $100 increase in aggregate demand, given that the MPC = 0.60.

The velocity of circulation is equal to

A) the price level multiplied by the quantity of money. B) nominal GDP divided by the quantity of money. C) the quantity of money divided by the price level and then multiplied by real GDP. D) the quantity of money divided by nominal GDP. E) the price level divided by real GDP.

The fundamental identity of national income accounting implies ________

A) Expenditure = Production + Income B) Expenditure = Production = Income C) Income = Expenditure - Production D) Income = Expenditure / Production E) None of the above