Intro to Macro Quiz 1 formulas

Profits =

= Revenues - costs

GDP =

= Consumption + Investment + Government + Trade balance (C + I + G + (X-M))

Trade balance =

= Exports - imports

Trade surplus = 

= Exports - imports

Trade deficit =

= Imports - exports

GDP per capita =

= GDP/population

Value/nominal =

= Price x Quantity

Real interest rate =

= Nominal interest rate - inflation rate

Price index = 

= Price in period of interest/price in base period

Real GDP =

= Nominal GDP/price index

GDP at the end rate =

= GDP at starting date x (1 + growth rate of GDP)^years

Total labor force = 

= Employed + Unemployed

Unemployment rate =

= Unemployed people/100 x total labor force

Labor force participation rate =

Total labor force / total adult population x 100

Real GDP = 

Nominal GDP / (Price index / 100)

% change in nominal =

% change in price + % change in quantity

% change in quantity =

= % change in nominal - % change in price

Real GDP growth rate (% change in quantity) =

Growth rate in nominal GDP (% change in value) - inflation rate (% change in price)