AP Macro Formulas Flashcards
Terms : Hide Images [1]
| 6062921567 | Gross Domestic Product | Consumption + Investment + Govt. Spending + (Exports - Imports) | 0 | |
| 6062933679 | National Income | Wages + Rents + Interest + Profits | 1 | |
| 6062942481 | % Change in GDP (Real or Nominal) | (Year New - Base Year)/Base Year x 100 | 2 | |
| 6063539388 | Labor Force Participation Rate | Labor Force/Pop. aged 16+ x 100 | 3 | |
| 6063545252 | Unemployment Rate | # unemployed workers/Labor Force x 100 | 4 | |
| 6160308471 | Natural Unemployment | Frictional unemployment + Structural unemployment | 5 | |
| 6160313528 | Actual Unemployment | Natural unemployment + Cyclical unemployment | 6 | |
| 6160320463 | Inflation Rate using PRICE LEVEL | Price level Yr 2 - Price level Yr 1 / Price level Yr 1 x 100 | 7 | |
| 6160333909 | Price Index in a given year | Cost of market basket Yr 1/Cost of market basket base year x 100 | 8 | |
| 6160347189 | Inflation rate using PRICE INDEX | Price Index Y2 - Price Index Y1 / Price Index Y1 x 100 | 9 | |
| 6160358072 | GDP Deflator | In same year; Nominal GDP/Real GDP x 100 | 10 | |
| 6422833465 | Marginal Propensity to Consume | Consumer Spending Change/Disposable Income Change | 11 | |
| 6422842906 | Spending Multiplier | 1/1-MPC or 1/MPS | 12 | |
| 6422850678 | Spending change in GDP | Spending Multiplier x New Spending | 13 | |
| 6422854415 | Output Gap | Actual Output - Potential Output/Potential Output | 14 | |
| 6422879719 | Future Value of Money | FV = PV x (1 + r) where r = interest rate | 15 | |
| 6422896661 | Present Value of Money | PV = FV/1 + r where r = interest rate | 16 | |
| 6589743641 | Government Spending Multiplier | 1/MPS | 17 | |
| 6589746938 | Tax or Transfer Multiplier | MPC/MPS Can be a positive or negative number. Tax cuts are positive, increasing taxes negative number. | 18 |