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AP Macroeconomics Formulas & Graphs Flashcards

Terms : Hide Images
9472443125Spending Multiplier1/ MPS0
9472443126Tax Multiplier-MPC/ MPS1
9472443127Money Multiplier1/ RRR2
9472443128Real Interest RateNominal Interest Rate - Inflation Rate3
9472443129Opportunity Cost (Output Method)Alternate Item Produced/ Item Produced4
9472443130GDP (Expenditure Approach)C + I + G + NX (consumption + investment + government spending + net exports)5
9472443131GDP (Income Approach)W + I + R + P (wages + interest payments + rent + profits)6
9472443132GDP Growth RateGDP Year 2 - GDP Year 1/ GDP Year 1 x1007
9472443133Inflation RateCPI Year 2 - CPI Year 1/ CPI Year 1 x 1008
9472443134Unemployment Rate# of unemployed/ # in labor force x 1009
9472443135Consumer Price IndexCurrent year basket price/ base year basket price x 10010
9472443136GDP DeflatorCurrent year basket price/ base year basket price x 10011
9472443137Labor ForceEmployed + Unemployed12
9472443138Labor Force Participation RateLabor force/ population x 10013
9472443139Marginal Propensity to Consume∆ Consumption/ ∆ Income14
9472443140Marginal Propensity to Save∆ Savings/ ∆ Income15
9472443141Real GDPNominal GDP/ GDP Deflator x 10016
9472443142Quantity Theory of MoneyMV = PQ17
9472443143MPC + MPS =118
9472443144AD/ AS Recessionary Gap19
9472443145Money Market Graph20
9472443146Production Possibilities Curve21
9472443147Phillips Curve22
9472443148Loanable Funds Graph23
9472443149AD/ AS Model Full Employment24
9472443150AD/ AS Inflationary Gap25
9472443151Business Cycle26

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