econ formulas Flashcards

1
Q

Economic Growth

A

Economic Growth Rate =
GDP in Current Period - GDP in Previous Period /
GDP in Previous Period × 100

  • Measures the percentage change in real GDP over time.

Real GDP = Nominal GDP/Price Index (CPI) × 100

  • Adjusts GDP for inflation using the Consumer Price Index (CPI).
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2
Q

Inflation Rate

A

Inflation Rate = CPI in Current Year - CPI in Previous Year / CPI in Previous Year × 100

  • Measures the percentage change in the Consumer Price Index (CPI) from one period to the next.
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3
Q

Unemployment Rate

A

Unemployment Rate
= Number of Unemployed / Labor Force × 100

  • Indicates the percentage of the labor force that is unemployed.
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4
Q

Labor Force Participation Rate

A

Labor Force Participation Rate
= LaborForce / Working-AgePopulation
× 100

  • Measures the proportion of the working-age population that is part of the labor force
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5
Q

Balance of Payments (Current Account Balance)

A

Current Account Balance
= Exports - Imports + Net Income
+ Net Current Transfers

  • Summarises a nation’s transactions with the rest of the world, including trade, income, and transfers.
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6
Q

Terms of Trade (ToT):

A

Terms of Trade =
Index of Export Prices / Index of Import Prices × 100

  • Measures a country’s export prices relative to its import prices.
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7
Q

Price Elasticity of Demand (PED):

A

PED = % Change in QTY Demanded / % Change in Price

  • Measures how responsive quantity demanded is to changes in price.

% change in $ = new price - old price / old price

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8
Q

Budget Deficit or Surplus:

A

Budget Balance = Government Revenue - Government Spending

  • A positive balance is a surplus; a negative balance is a deficit.
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9
Q

Exchange Rate Change:

A

Exchange Rate Change
= New Exchange Rate - Old Exchange Rate / Old Exchange Rate × 100

  • Measures the percentage change in the value of a currency relative to another.
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