This equation is called either “the Quantity Equation” or “the Equation of Exchange.” It is a very important equation for understanding the effects of money on the economy, but in this exercise, you can just treat the percent change version of the equation as a mathematical fact. Fill in the blank in each row and then check your answers.
Note that if you divide each thing in the percent change version of the equation by time elapsed, you will get an equation in growth rates. The growth rate of the aggregate price index P is called inflation. Note also that if Divisia indices are used for money M (which is an aggregate of several different components), prices and quantities, then the percent change version of the equation is primary (most basic) and the MV=PY version would have to be deduced from the percent change version.