Why are my inline equations not perfectly aligned?

To make a whole line aligned with the equation, simply enclose the words in \text{} and render them as well.

Unfortunately, Google Docs inline images only allows me to align the bottom of the equation with the bottom of the line. One other possible work around is to manually select each image then select wrap text and center it on the line. A second possible workaround is to make the font of only the equation smaller so that it automatically lines up with the top of the text, which might be achieved by making the rest of your document a bigger font, or by typing all your equations in size 10 font or so. A third possible workaround is to render the text surrounding the equation as well, but enclose the text in a \text{} block so that it is not rendered like math. This will align the text perfectly with the math with an identical font.

As of right now, the Google Docs programming language does not let me center the image as an inline image, and support to change it into a wrapped equation is minimal, as this is a brand-new experimental feature. 

How can I make an equation over multiple lines?

Simply use shift+enter instead of enter when going to the next line within an equation!