AP Macroeconomics Formula List

Vocabulary flashcards covering the formulas for Units 1, 2, and 3 from the AP Macroeconomics formula sheet.

Opportunity Cost of Good A (Output Problem)

$$\frac{\text{output good B}}{\text{output good A}}$$

Opportunity Cost of Good A (Input Problem)

$$\frac{\text{input good A}}{\text{input good B}}\text{ }$$

GDP Expenditure Equation

$$C+I+G+(X-M)$$

Unemployment Rate

$$\frac{\text{Unemployed}}{\text{Labor Force}}\times100$$

Labor Force Participation Rate

$$\frac{\text{Labor Force}}{\text{Working age, noninstitutionalized population}}\times100$$

Natural Rate of Unemployment

$$\text{frictional unemployment}+\text{structural unemployment}$$

Consumer Price Index (CPI)

$$\frac{\text{Market Basket current}}{\text{Market Basket base}}\times100$$

Inflation Rate

$$\frac{\text{CPI}_2 - \text{CPI}_1}{\text{CPI}_1}\times100$$

GDP Deflator

$$\frac{\text{Nominal GDP}}{\text{Real GDP}}\times100$$

Market Basket Given Year

$$(\text{Current year prices}\times\text{base year quantities})$$

Nominal GDP

$$(\text{Current year prices}\times\text{current year quantities})$$

Real GDP

$$(\text{Base year prices}\times\text{current year quantities})$$