Formulas [ economics ] Flashcards
3.1 B ] Formula for Replacement ratio ?
Replacement ratio = net income while unemployed over net income while employed.
3.1 B ] Formula for replacement rate %
Replacement rate % = net income while unemployed over net income while employed x100
- 1 A ] Labour market indicators :
1. The labour force [ LF ] Formula ?
Labour Force = E + U
- 1 A ]Labour market indicators :
2. The unemployment rate formula
- The unemployment rate
Unemployment rate [U%] = no. unemployed over labour force x100
- 1 A ] labour market indicators :
3. Formula for the economic activity rate ?
- The economic activity rate .
The LF participation rate = LF over working-age population x100
- 1 A ] labour market indicator :
4. The employment rate
- The employment rate
E rate [E%] = [E divided working-age population ] x100
or
E rate [E%] = LFPR x (1-U rate)
- Formula of net exports ?
Net exports [ X - M ] =
The value of exports [ X ] minus the value of imports { M ]
- Formula :
Aggregate expenditure [ AE = TE ]
Total expenditure = C + I + G + [ X - M ]
- Formula :
Aggregate income [ Y ]
Y = GDP = C + I + G [ X - M ]
- Formula :
Tax, market price and factor cost ?
AE = Y + indirect taxes - subsidies
- Formula :
Net investment ?
Net investment = Gross investment - depreciation.
Formula : Inflation rate calculated ?
Formula : Inflation rate calculated ?
pie = [ ( CPIt - CPIt-1 ) over CPIt-1 ] x100
CPIt = cost of basket of good in year t prices over cost of basket of good base year prices x100
Formula : Laspeyres ?
Laspeyres inflation index = E Pt1Qi0 over E Pi0Qi0
Formula : The Paasche Index ?
The Paasche Index = E Qi1Pi1 over E Qi1Pi0
Formula : GDP Deflator
GDP Deflator = Nominal GDP over Real GDP x100
