Macro Formulas Flashcards
GDP or AD
C+I+G+(X-M)
GDP Deflator
nominal GDP
——————- * 100
real GDP
Real GDP
nominal GDP
——————- * 100
deflator
Unemployment Rate
unemployed
——————- * 100
labour force
Labour Force
unemployed + employed
Inflation or % change CPI
Value of basket of goods
P*Q of basket goods
or
Basket Year
—————– *100
Basket Base Year
Real Income
nominal Y
————— *100
CPI
Marginal Tax
% change tax
————–
% change income
Average Tax
total tax
————–
total income
GDP Output Method
Total value of G+S produced within an economy in a given year
GDP Income Method
factor income + net income abroad
GDP Expenditure Method
AD = C+I+G+(X-M)
Nominal GDP
Quantity of G+S*Current Prices
Green GDP
GDP - environmental costs
GNI
GDP + net factor income
Gini Coefficient
a+b
Keynesian Multiplier
1 1
———- or ———-
1-MPC MPW
or
1
———————–
MPM+MPS+MPT
Index Values
current value
———————– *100
raw value base Y
Terms of Trade:
How far a basket can buy M
average index price X
——————————- *100
average index price M
Taxable Income:
Amount eligible for tax
total income - tax free allowance
Average Tax Rate:
How much is taxed per unit currency
total income tax
———————– *100
total income
Marginal Tax Rate:
How much extra income is taxed
change total income tax
———————————- *100
change total income
Employment Rate
unemployed
—————— *100
labour force
Per capita
Divided by the population
