Unit 2 Economic Indicators and the Business Cycle Formulas - AP Macro Economics

Formulas needed for Unit 2 of AP Macro Economics

GDP

C + I + G + (X - M)

Labor force

employed + unemployed

Unemployment rate

(unemployed/labor force) x 100

Unemployment

NRU + cyclical

CPI

(price of a market basket in a given year/price of a market basket in the base year) x 100

GDP deflator

(nominal GDP/real GDP) x 100

Inflation rate

(CPI in year later - CPI in year earlier)/CPI in year earlier x 100

Percent change in real wages

percent change in nominal wages - inflation rate