Equation of Exchange
Tags: #Economics #MacroEconomicsEquation
$$\text{MV} = \text{PQ}$$Latex Code
\text{MV} = \text{PQ}
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Introduction
Equation
Latex Code
\text{MV} = \text{PQ}
Explanation
Latex code for Equation of Exchange. The equation of exchange says simply that total spending on goods and services, measured as MV, equals total spending on goods and services, measured as PY (or nominal GDP). The equation of exchange is thus an identity, a mathematical expression that is true by definition.
: Total spending on goods and services, measured as Monetary Value
: Total spending on goods and services, measured as PY (or nominal GDP)
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