Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:

Which of the following is TRUE regarding the distribution of wealth and the distribution of income?

A) The distribution of wealth is a less accurate measure of inequality because it excludes human capital. B) The distribution of wealth is a more accurate measure of inequality because it includes houses. C) The distribution of income is a less accurate measure of inequality because it excludes the value of things you own. D) The distribution of income is a less accurate measure of inequality because not everyone has a job.

Using the equation of exchange, what is nominal GDP if the money supply is $5 trillion and the velocity of money is 4?

a) $10 trillion b) $20 trillion c) $30 trillion d) $40 trillion