Formulas for Macroeconomics
Subject:
Economics [1]
Formulas for Macroeconomics GDP = C+Ig+G+Xn NDP = GDP ? consumption of fixed capital = GDP - depreciation NI = NDP ? Net foreign factor income earned ? indirect business taxes PI = NI ? SS Contributions ? corporate income taxes ? undist. corporate profit + transfer payments DI = PI ? personal taxes = consumption + savings Price Index Nominal GDP/real GDP Inflation rate (Index 2 ? Index 1)/Index 1 Real GDP Nominal GDP/Price Index Unemployment Rate (Unemployed/Labor force)*100 Okun?s Law For every 1% point actual unemployment rate exceeds natural rate, GDP gap of 2% occurs. Real Income Nominal income/Price index APC Consumption/income APS Saving/income MPC Change in consumption/change in income MPS Change in saving/change in income