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classical economic queries

Topic created · 8 Posts · 154 Views
  • 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.

  • @sosafi407214547
    Hi .. economics here 🙂

  • @sosafi407214547 ![0_1554311306562_10254327-EC11-423D-BF5A-84B44C7599D0.jpeg](Uploading 10%)

  • @sosafi407214547
    I’m trying to upload photo here .. to explain your first question .. but it’s not working ... kindly help @root

    It says request entity too large ... but it’s just a photo

  • @sosafi407214547
    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

    It means
    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 🙂

  • @sosafi407214547 EC199DD1-52A1-4DF0-A05C-1E85F01A23D7.jpeg

    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.

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