## Equation of Exchange

Tags: #Economics #MacroEconomics### Equation

$$\text{MV} = \text{PQ}$$### 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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