AP Econ formulas

Comparative Advantage Input

Input= Other goes Under

Comparative Advantage Outputs

OOO= Other goes Over

CPI (Consumer Price Index)

(Current year market basket/ Base year market basket) 100

Fishers Formula

R= i - (pi)

R= real interest rates

i= nominal interest rates

(Pi)= inflation rate

GDP Deflator

(Nominal GDP/Real GDP) 100

GDP=

C+I+G+Nx (exports-imports)

Labor Participation Rate

Labor force (employed + unemployed)/working age population x 100

Unemployment rate

# of unemployed/ total labor force x 100

Marginal Propensity to Save

Change in savings/Change in Disposable income

MPC

Change in consumption/ Change in disposable income

Tax multiplier

MPC/MPS

Spending Multiplier

1/MPS

inflation rate

New CPI - Old CPI/ Old CPI x 100