Formulas Flashcards
1
Q
Real GDP
A
(Nominal GDP/GDP Deflator) X 100
2
Q
Real GDP per Capita
A
Real GDP / Total Population
3
Q
Marginal Propensity to Save
A
1 - MPC
4
Q
Multiplier Effect
A
1/(1-MPC) OR 1/MPS
5
Q
Change in Real GDP
A
Multiplier effect X change in spending
6
Q
GDP Expenditure Approach (GICE)
A
Government Purchases goods and services \+ Gross Private Domestic Investments \+ Personal Consumption Expenditure \+ Net Exports - Net Imports
7
Q
GDP Income Approach
A
Income of Proprietors \+ Profits of Corporations \+ Interest Income (Net) \+ Rental Income \+ Adjustments for Net Foreign Income \+ Taxes \+ Employee Compensation Wages \+ Depreciation
8
Q
Unemployment Rate
A
Number of Unemployed (last 4 weeks)/Total labor force
X 100
9
Q
Consumer Price Index
A
(Current Cost / Base Year) X 100
10
Q
Inflation Rate
A
(CPI This year - CPI last year)/CPI Last Year
11
Q
Net Domestic Product
A
GDP minus Depreciation
12
Q
Net National Product
A
GNP minus Depreciation
13
Q
National Income
A
Net National Product minus Indirect business taxes
