equations mid 1

Question 1

gdp expenditure

Answer 1

Y = C + G + I + X-M

Question 2

gdp income approach

Answer 2

(wages, salaries, labour income) + OFI (rent, interest, profit) + dep + indirect taxes less subsides

Question 3

real gdp

Answer 3

valued at the prices of a ref base year
price x quantity

Question 4

nominal

Answer 4

precise name for real
current year prices

Question 5

chained dollar

Answer 5

1. each year gdp in that year prices (PxQ)
2. one year quantity and other year price
   - sub 2 - 1 / 1 x 100 to get % change
3. link to ref year???

Question 6

labour force

Answer 6

employed + unemployed

Question 7

unempliyment rate

Answer 7

unemployed / laour force x 100

Question 8

involuntary part time rate

Answer 8

involuntary PT / labour force x100

Question 9

labour force participation rate

Answer 9

labour force / working age pop x 100

Question 10

employment rate

Answer 10

employed / working age pop x 100

Question 11

natural employment

Answer 11

structural + fricitional

Question 12

full employment

Answer 12

unemployement rate = nat unemployment

Question 13

output gap

Answer 13

real GDP - potential GDP

Question 14

CPI

Answer 14

CPI current year / CPI basee year (100) x 100

Question 15

inflation rate

Answer 15

cpi this year - cpi last year / cpi last year x 100

Question 16

GDP deflator

Answer 16

nominal gdp / real gdp x 100

Question 17

growth rate / % change of real GDP

Answer 17

real gdp in current - real gdp in previous / previous x 100

Question 18

real gdp/ perosn

Answer 18

real gdp / pop

Question 19

rule of 70

Answer 19

70 / annual percent growtth rate of variable

Question 20

real wage rate

Answer 20

money wage rate / price level

Question 21

labour produtitvyt

Answer 21

real gdp / aggregate labour hours

Question 22

net investment

Answer 22

gross investment - dep

Question 23

interest rate

Answer 23

interest / price of asset

Question 24

real int rate

Answer 24

nominal int rate - inflation rate

Question 25

quantity of lonable funds demanded

Answer 25

= budget deficit
- rise in real int
- movement on curve

Question 26

quantity of loanble funds supplied

Answer 26

= budgetv surplus
- rise in int rate increases supply
- movement on curve

Question 27

crowding out effect

Answer 27

govrnment bud deficit to rasie the real int rate and increase investment

Question 28

ricardo barro effect

Answer 28

gov budget has no effect on real int or investment