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AP Macroeconomics Formulas & Graphs Flashcards

Terms : Hide Images
9698610153Spending Multiplier1/ MPS0
9698610154Tax Multiplier-MPC/ MPS1
9698610155Money Multiplier1/ RRR2
9698610156Real Interest RateNominal Interest Rate - Inflation Rate3
9698610157Opportunity Cost (Output Method)Alternate Item Produced/ Item Produced4
9698610158GDP (Expenditure Approach)C + I + G + NX (consumption + investment + government spending + net exports)5
9698610159GDP (Income Approach)W + I + R + P (wages + interest payments + rent + profits)6
9698610160GDP Growth RateGDP Year 2 - GDP Year 1/ GDP Year 1 x1007
9698610161Inflation RateCPI Year 2 - CPI Year 1/ CPI Year 1 x 1008
9698610162Unemployment Rate# of unemployed/ # in labor force x 1009
9698610163Consumer Price IndexCurrent year basket price/ base year basket price x 10010
9698610164GDP DeflatorCurrent year basket price/ base year basket price x 10011
9698610165Labor ForceEmployed + Unemployed12
9698610166Labor Force Participation RateLabor force/ population x 10013
9698610167Marginal Propensity to Consume∆ Consumption/ ∆ Income14
9698610168Marginal Propensity to Save∆ Savings/ ∆ Income15
9698610169Real GDPNominal GDP/ GDP Deflator x 10016
9698610170Quantity Theory of MoneyMV = PQ17
9698610171MPC + MPS =118
9698610172AD/ AS Recessionary Gap19
9698610173Money Market Graph20
9698610174Production Possibilities Curve21
9698610175Short Run Phillips Curve22
9698610176Loanable Funds Graph23
9698610177AD/ AS Model Full Employment24
9698610178AD/ AS Inflationary Gap25
9698610179Business Cycle26
9698610180Foreign Exchange Graph27

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