Formulas

Question 1

GDP

Answer 1

C + I + G + Xn

Question 2

Real GDP

Answer 2

nominal - price level

Question 3

GDP Growth Rate

Answer 3

((current GDP - base year GDP) / base year) x 100

Question 4

GDP Deflator

Answer 4

(nominal GDP / real GDP) x 100

Question 5

Consumer Price Index (CPI)

Answer 5

(market basket of current year / market basket of base year) x 100

Question 6

Inflation Rate

Answer 6

((Year 2 - Year 1) / Year 1) x 100

Question 7

Unemployment Rate

Answer 7

(Unemployed / Labor force) x 100

Question 8

Labor Force Participation Rate

Answer 8

(Labor Force / all willing, able, and eligible to work) x 100

Question 9

Quantity Theory of Money

Answer 9

MV = PY

Money Supply (M) x Velocity of Circ. (V) = Price Level (P) x Real GDP (Y)

Question 10

Money Multiplier

Answer 10

1 / required reserve ratio

Question 11

MPC vs. MPS

Answer 11

Marginal propensity to consumer (MPC) + Marginal propensity to save (MPS) = 1

Question 12

Spending Multiplier

Answer 12

1 / MPS

Question 13

Tax Multiplier

Answer 13

MPC / MPS

Question 14

Maximum Demand-Deposit/Money Created