Question

how to understand economic equations please suggest me some tips​

Answer 1

Explanation:

Production function

Fisher equation

i = r + π

Breaking down output

Y = C + I + G + NX

Closed economies

S = I

This equation says that in a closed economy (one that doesn’t trade with the rest of the world) savings (S) must equal investment

Open economies

S – I = NX

Quantity equation

MV = PY

Growth rate of the money supply

gm = π + gy