Equations

Question 1

What is the equation for GDP?

Answer 1

Y = C + I + G + NX

GDP = Consumption + Investment + Gov purchases + Net exports

where:
Y = GDP
C = Consumption
I = Investment
G = Gov purchases
NX = Net exports

Question 2

What does Y stand for in?

Y = C + I + G + NX

Answer 2

Y= GDP

Question 3

What does C stand for in?

Y = C + I + G + NX

Answer 3

C = Consumption

Question 4

What does I stand for in?

Y = C + I + G + NX

Answer 4

I = Investment

Question 5

What does G stand for in?

Y = C + I + G + NX

Answer 5

G = Government purchases

Question 6

What does NX stand for in?

Y = C + I + G + NX

Answer 6

NX = Net exports

Question 7

What is the activity rate?

Answer 7

Employed + Unemployed / Working age population

Question 8

What is the inactivity rate?

Answer 8

1 - (activity rate)

–> 1 - (Employed + Unemployed / Working age population)

Question 9

What is the labour force participation rate?

Answer 9

labour force participation rate = (labour force / working-age population) x 100

Question 10

What is the unemployment rate?

Answer 10

unemployment rate = (unemployed / labour force) x 100