AP Macroeconomics Formulas Flashcards
Terms : Hide Images [1]
| 6574523323 | Gross Domestic Product (expenditure approach) | C + I + G + Xn | 0 | |
| 6574523325 | Nominal GDP | Quantity Goods Produced x Current Prices | 1 | |
| 6574523326 | GDP Deflator | (Nominal GDP/GDP Deflator) x 100 | 2 | |
| 6574523327 | Nominal to Real | nominal - inflation | 3 | |
| 6574523328 | % Inflation Increase (w/o Base Year) | (2nd year CPI - 1st year CPI)/1st year CPI x 100 | 4 | |
| 6574523329 | Marginal Propensity to Consume | Δ Consumption / Δ Disposable Income | 5 | |
| 6574523330 | Marginal Propensity to Save | Δ Savings/Δ Disposable Income | 6 | |
| 6574523331 | Expenditure Multiplier | 1/MPS 1/(1 - MPC) Δ GDP / Δ Spending | 7 | |
| 6574523332 | Tax Multiplier | MPC / MPS ΔGDP / ΔTaxes | 8 | |
| 6574523333 | Change in GDP (as a result of Fiscal Policy) | Expenditures (Spending) × Spending Multiplier Δ Expenditures (Taxes) × Tax Multiplier | 9 | |
| 6574523334 | Rule of 70 (years to double price) | 70 / interest | 10 | |
| 6574523335 | Money Multiplier | 1/required reserve ratio | 11 | |
| 6574552255 | Unemployment rate | Looking for work/Labor Fore * 100 | 12 |