Equations and conditions (macro) Flashcards
1
Q
GDP
A
- Output method, income method, expenditure
2
Q
Nominal GDP
A
Q (of good and services produced and sold in a year) x Current prices
3
Q
Real GDP
A
Q x constant prices (prices in base year)
Nominal GDP/price index (CPI, RPI, etc.) x 100
4
Q
GDP deflator
A
Nominal GDP/real GDP x 100
5
Q
GNI
A
GDP + net factor income
6
Q
Green GDP
A
GDP - environmental costs
7
Q
AD
A
C + I + G + (X - M)
8
Q
GDP per capita
A
GDP/population
9
Q
Multiplier
A
1/1-MPC
1/marginal propensity to withdraw (save, import, tax)
10
Q
Unemployment rate
A
Unemployed/size of labour force
Labour force is the employed and unemployed
11
Q
Index number
A
Current value/raw value in the base year x 100
12
Q
% change
A
New - initial/initial x 100
13
Q
Terms of trade
A
Average index price of exports / average index price of imports
x 100
