Equations Flashcards
PED
% change in QD / % change in price
PES
% change in QS / % change in price
YED
% change in QD / % change in income
XED
% change in QD of GOOD A / % change in price of GOOD B
Real GDP
nominal GDP / GDP deflator
Real GDP per Capita
real GDP / population
if nominal gdp is given, must change to real GDP first
Bond Yield
coupon amount / market price
Total revenue
price x quantity
average revenue
Total revenue / quantity (or output)
marginal revenue
change in total revenue / change of total quantity
Total cost
fixed costs + fixed variable costs
average costs
total costs / quantity
marginal cost
change in total cost / change in total quantity
Profit
Total revenue - Total costs
Supernormal profit
(AR – AC) * Q2
Normal profit
Multiplier
1/ 1 - MPC OR 1/ MPS
GINI COEFFICIENT
1 = perfect inequality 0 = perfect equality
HDI
1 = very high development 0 = very low development
Liquidity ratio
Liquid assets / deposits
Capital ratios
Capital vs loans
High capital ratio means capital is higher than loans because if banks need to repay its consumers it can use the capital to do so
Balance sheets
Assets and liabilities
Assets
Cash
balances
money at call and short notice
bills
investments
advances
fixed assets
Liabilities
Share capital
Reserves
Long term borrowing
Short term borrowing
Deposits
