classical economic queries
kindly help for the following queries: 1.How MPN=W/P in the demand curve of classical economist 2.How quantity theory of money differ on income and transaction formulation of fisher 3.Where can i find the CAD,Capital acc deficit , Bop from 1950 to present decad
For 1,2 - refer Froyen or Blanchard
For 3, see Datt and Sundaram
If you want non-optional version, please Google Khan Academy lectures and refer to Sanjeev Verma.
Hi .. economics here
@sosafi407214547 ![0_1554311306562_10254327-EC11-423D-BF5A-84B44C7599D0.jpeg](Uploading 10%)
Regarding 2nd question
If you read froyen chapter 2 everything become crystal clear
Still if I try to explain it to you a bit
Entire difference lies in the words itself that is “ transaction “ and income
In first case the equation of exchange takes MV(t)= P(t)T
V is for transaction velocity of money ,p for price index for items traded and T is volume of transaction
That is it could be for newly produced goods , exchange of previously produced goods and financial assets
But this is like counting things more than once
So In ncone version we have Y replacing T
SO velocity of money would be no of times dollar used in transaction involving current output only ..
and p would be price index of currently produced output only
And Y is level of current output only unlike T of transaction appproach ( which is for volume of transactions)
This is just a crude explanation. You should try reading froyen now .. to get clarity
For first question .. although froyen has really explained it well but it seems you haven’t read it . Anyways i have tried to explain only the asked part in short format ...
@sosafi407214547 regarding your 2nd question, see Gaurav Agarwal's Evernote notes which is available online, the explanation is really good there and for the data see economic survey statistical appendix.