Calculations Flashcards
1
Q
GDP
A
C+I+G+(X-M)
2
Q
GNI
A
GDP + income from other countries - incomes flowing out of other countries
3
Q
Unemployment Rate
A
(#of unemployed / # in labour force) x 100
4
Q
Natural rate of unemployment
A
Structural + Seasonal + Frictional
5
Q
Real Interest Rate
A
nominal interest rate - inflation
6
Q
Nominal Interest rate
A
Real interest rate + inflation
7
Q
CPI
A
(price of market basket / price of market basket in base year) x 100
8
Q
GDP Deflator
A
(Nominal GDP / Real GDP) x 100
9
Q
Marginal propensity to consume
A
Change in consumption / Change in income
10
Q
Marginal propensity to save
A
Change in savings / Change in income
11
Q
Spending Multiplier
A
1/MPS or 1/1-MPC
12
Q
Total change in GDP
A
Multiplier x Initial change in spending
13
Q
Simple tax multiplier
A
MPC x 1/MPS or MPC/MPS
14
Q
Money Multiplier
A
1/Reserve Ratio
