formulas to remember

Question 1

Inflation Rate formula

Answer 1

(CPI Current Year - CPI Base Year) / CPI Base year x 100

Question 2

cpi formula

Answer 2

(value of basket in current year / value of basket in prior year) x 100

Question 3

Formula for adjusting for inflation

Answer 3

(Amount in given year dollars x CPI Base Year) / CPI Given year

Question 4

Real interest rate

Answer 4

Nominal Interest rate - Inflation rate

Question 5

growth rate formula

Answer 5

(current year value / past value) ^1/(number of periods) -1

Question 6

what is the rule of 70 and what is the formula

Answer 6

Rule of 70 is the estimated time for a variable to double

The formula: Years to Double = 70/ growth rate in percent

Question 7

Quantity equation

Answer 7

M (Money) * V(velocity of money = P (Price level) * Y (real GDP)

Question 8

Velocity of money

Answer 8

V= P * Y / m

Question 9

Unemployment Rate

Answer 9

unemployment rate = Number of unemployed / laborforce * 100

Question 10

Laborforce

Answer 10

labor force = Employed + Unemployed

Question 11

GDP Deflator

Answer 11

GDP Delfator = Nominal GDP / real gdp x 100

Question 12

Nominal GDP

Answer 12

Nominal GDP = Price level x Real GDP

Question 13

Real GDP

Answer 13

Real GDP = nominal GDP / CPI x 100