formulas and graphs

Question 1

GDP expenditure approach

Answer 1

C + Ig + G + Xn

Question 2

GDP income approach

Answer 2

W + R + I + P
wages
rent
interest
profit

Question 3

GDP value added approach

Answer 3

adding up a long the way of production
final price

Question 4

CPI

Answer 4

current price of market basket/price of market basket base year X 100

Question 5

unemployment rate

Answer 5

of unemployed/labor force X 100

Question 6

labor force particiaption rate

Answer 6

of labor force/population over 16 X 100

Question 7

GDP Deflator

Answer 7

Nominal GDP X 100/Real GDP

Question 8

Inflation rate

Answer 8

new - old/old X 100

Question 9

real interest rate

Answer 9

r = i% - pi%

Question 10

nominal interest rate

Answer 10

I = r% + pi%

Question 11

Nominal GDP

Answer 11

GDP Deflator X Real GDP/100

Question 12

Quantity Theory of Money

Answer 12

MV = PQ

Question 13

Velocity of Money

Answer 13

MV = PY

Question 14

Spending Multiplier

Answer 14

1/MPS
1/1-MPC

Question 15

Tax multiplier

Answer 15

-MPC/MPS

lower taxes = MPC/MPS

Question 16

money multiplier

Answer 16

1/rr

Question 17

Real GDP per capita

Answer 17

real GDP/capita

Question 18

Input problem

Answer 18

IOU
other goes under

Question 19

Output problem

Answer 19

OOO
other goes over

Question 20

nominal (price and output)

Answer 20

current prices X current quantity

Question 21

real (price and output)

Answer 21

base prices X current quantity

Question 22

4 reasons that cause economic growth

Answer 22

increase technology
increase human capital
increase physical capital
increase productivity

Question 23

4 assumptions of PPC

Answer 23

fixed technology
fixed resources
full employment
two goods

Question 24

straight PPC

Answer 24

constant opportunity cost

Question 25

4 reasons that shift ID graph

Answer 25

cost of production business taxes technological change stock of capital expectations

Question 26

list of MD shifts

Answer 26

change in price level change in RGDP change in technology change in institutions

Question 27

2 reasons of DLF shifts

Answer 27

buisness expectations government borrowing

Question 28

2 reasons why DLF shifts

Answer 28

private savings capital inflow

Question 29

list reasons why MS shifts

Answer 29

buying bonds selling bonds

Question 30

4 reasons for foreign exchange to shift

Answer 30

change in price level change in interest rates change in relative income change in consumer tastes

Question 31

money neutrality order

Answer 31

money market ID graph AS/AD

Question 32

shifts AD

Answer 32

government spending consumption investment net exports

Question 33

shifts SRAS

Answer 33

input costs corporate taxes/regulations productivity inflationary expectations

Question 34

fiscal policy tools

Answer 34

government spending personal income taxes transfer payments

Question 35

monetary policy tools

Answer 35

reserve rate discount rate federal funds rate buy and sell bonds

Question 36

relationship of interest rates and bond prices

Answer 36

inverse

Question 37

appreciated currency affect on imports and exports

Answer 37

decrease exports increase imports

Question 38

depreciated currency affect on exports and imports

Answer 38

increase exports decrease imports

Question 39

current accounts

Answer 39

goods and services transfer payments factor income

Question 40

financial accounts

Answer 40

official assets private assets physical assets

Question 41

2 reasons of shift for reserve market model

Answer 41

change in IOR (administered rates) change in discount rate

Question 42

3 types of unemployment

Answer 42

cyclical structural frictional