Formulas Quiz Flashcards
1
Q
Scarcity
A
Unlimited wants + limited needs
2
Q
RGDP/AD
A
C + G + I + (X-M)
3
Q
Labor Force
A
Employed + Unemployed
4
Q
Labor Force Participation Rate
A
(Labor Force/Population) x 100
5
Q
Unemployment Rate
A
(# of Unemployed/Labor Force) x 100
6
Q
Natural rate of Unemployment
A
((Structural + Frictional)/Labor Force) x 100
7
Q
RGDP (baskets)
A
Current Year Quantity x Base Year Price
8
Q
GDP (baskets)
A
Current Year Quantity x Current Year Price
9
Q
When given 2 of 3 values for a specific formula
A
RGDP = Nominal GDP/Price Index
10
Q
Rate Change Formula
A
((New - Old)/Old) x 100
11
Q
Spending Multiplier
A
1/MPS
12
Q
Tax Multiplier
A
-MPC/MPS (or 1 less than spending multiplier and negative)
13
Q
MPC and MPS always add up to
A
1
14
Q
APC and APS always add up to
A
1
15
Q
M1
A
Paper Currency + Coins + Checking Acct. + Travelers Checks
