Equations Flashcards
1
Q
AD equation
A
C + I + G + (X-M)
2
Q
Expenditure method
A
GDP= C + I + G + (X-M)
3
Q
APC
A
Consumption / Income
4
Q
APS
A
Savings / Income
5
Q
MPC
A
Change in consumption / change in income
6
Q
MPS
A
Change in savings / change in income
7
Q
MPM (marginal propensity to import)
A
Change in imports / change in income
8
Q
MPT (marginal propensity to tax)
A
Change in tax / change in income
9
Q
MPW (marginal propensity to withdraw)
A
= MPS + MPT + MPM
10
Q
Equilibrium
A
AS=AD
11
Q
Terms of trade
A
Index of export prices/index of import prices x100
