paper 3 skills Flashcards
1
Q
how do you calculate bond yield?
A
coupon/ market price x 100
2
Q
how do you convert price into index form
A
raw number/ base year x 100
3
Q
how do you convert index numbers to weighted index numbers?
A
multiply index number by weight and divide by total of all the weights
4
Q
how do you calculate real GDP?
A
nominal GDP/ price index
5
Q
how do you calculate real GDP per capita
A
real GDP/ population
6
Q
what is a structural budget deficit?
A
budget deficit at full employment
7
Q
what is a cyclical budget deficit?
A
increase in budget deficit in a recession
