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AP Macroeconomics Formulas & Graphs Flashcards

Terms : Hide Images
4342767262Spending Multiplier1/ MPS0
4342787189Tax Multiplier-MPC/ MPS1
4342790471Money Multiplier1/ RRR2
4342791756Real Interest RateNominal Interest Rate - Inflation Rate3
4342797861Opportunity Cost (Output Method)Alternate Item Produced/ Item Produced4
4342803912GDP (Expenditure Approach)C + I + G + NX (consumption + investment + government spending + net exports)5
5650794182GDP (Income Approach)W + I + R + P (wages + interest payments + rent + profits)6
4342805702GDP Growth RateGDP Year 2 - GDP Year 1/ GDP Year 1 x1007
4342812058Inflation RateCPI Year 2 - CPI Year 1/ CPI Year 1 x 1008
4342818863Unemployment Rate# of unemployed/ # in labor force x 1009
4342823753Consumer Price IndexCurrent year basket price/ base year basket price x 10010
5650817959GDP DeflatorCurrent year basket price/ base year basket price x 10011
5650830962Labor ForceEmployed + Unemployed12
4342829602Labor Force Participation RateLabor force/ population x 10013
4342834903Marginal Propensity to Consume∆ Consumption/ ∆ Income14
4342841304Marginal Propensity to Save∆ Savings/ ∆ Income15
4342844929Real GDPNominal GDP/ GDP Deflator x 10016
4360527078Quantity Theory of MoneyMV = PQ17
4360528824MPC + MPS =118
6351189555AD/ AS Recessionary Gap19
6351166603Money Market Graph20
6351163522Production Possibilities Curve21
6351173218Phillips Curve22
6351167359Loanable Funds Graph23
6351172186AD/ AS Model Full Employment24
6351188381AD/ AS Inflationary Gap25
6351184631Business Cycle26

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