Macro equations Flashcards
1
Q
GDP equation
A
y= C+ I +G + Nx
1
Q
Net exports
A
exports-imports
2
Q
GDP Deflator
A
(nominal GDP/real GDP) x 100
3
Q
Inflation equation
A
(CPI current - CPI base) / CPI base x 100
4
Q
CPI
A
(price in current year / price in base year) x 100
5
Q
Turning $ from year T to today’s
A
amount in year T dollars x (price level today/price level in year T)
6
Q
Nominal GDP
A
sum (P x Q)
6
Q
Real interest rate
A
nominal interest rate - inflation rate
7
Q
Labor force
A
sum of employed and unemployed
8
Q
Unemployment
A
(# of unemployed/labor force) x 100
9
Q
Labor force participation
A
(labor force/ adult population) x 100
