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AP Macroeconomics Formulas & Graphs Flashcards

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9201790463Spending Multiplier1/ MPS0
9201790464Tax Multiplier-MPC/ MPS1
9201790465Money Multiplier1/ RRR2
9201790466Real Interest RateNominal Interest Rate - Inflation Rate3
9201790467Opportunity Cost (Output Method)Alternate Item Produced/ Item Produced4
9201790468GDP (Expenditure Approach)C + I + G + NX (consumption + investment + government spending + net exports)5
9201790469GDP (Income Approach)W + I + R + P (wages + interest payments + rent + profits)6
9201790470GDP Growth RateGDP Year 2 - GDP Year 1/ GDP Year 1 x1007
9201790471Inflation RateCPI Year 2 - CPI Year 1/ CPI Year 1 x 1008
9201790472Unemployment Rate# of unemployed/ # in labor force x 1009
9201790473Consumer Price IndexCurrent year basket price/ base year basket price x 10010
9201790474GDP DeflatorCurrent year basket price/ base year basket price x 10011
9201790475Labor ForceEmployed + Unemployed12
9201790476Labor Force Participation RateLabor force/ population x 10013
9201790477Marginal Propensity to Consume∆ Consumption/ ∆ Income14
9201790478Marginal Propensity to Save∆ Savings/ ∆ Income15
9201790479Real GDPNominal GDP/ GDP Deflator x 10016
9201790480Quantity Theory of MoneyMV = PQ17
9201790481MPC + MPS =118
9201790482AD/ AS Recessionary Gap19
9201790483Money Market Graph20
9201790484Production Possibilities Curve21
9201790485Phillips Curve22
9201790486Loanable Funds Graph23
9201790487AD/ AS Model Full Employment24
9201790488AD/ AS Inflationary Gap25
9201790489Business Cycle26
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