Formulas

GDP Formula

GDP = Consumption + Investment + Government purchases + Net export
y = C + I + G + NX

Nominal GDP formula

Adds up total production in a year, with the prices for that year

Real GDP formula

Quantity from the year of interest with the prices from the other year

Labour force participation rate formula

(Employed+ Unemployed) / amount of working age people

Unemployment rate formula

Unemployed/Labour force

Inflation rate formula

(CPI this year - CPl last year) / CPI last year

GDP Deflator Formula

Nominal GDP/Real GDP

CPI formula

Nominal wage/Real wage x100

Todays wage/Starting wage x100

Original wage formula

Current wage/CPI x100

Real interest rate formula

Nominal interest rate - Inflation rate

Inflation rate formula from interest rates

Nominal interest rate - real interest rate

Nominal interest rate formula

Inflation rate + real interest rate

Marginal propensity to consume (MPC) formula

Change in consumption/Change in income

Savings formula

Income - consumption

Nominal exchange rate formula

Units of a foreign country/Number of dollars

Real exchange rate formula

Price in dollars/Foreign price in dollars

Foreign price in dollars formula

Foreign price in foreign currency/Nominal exchange rate

Current account formula

Credits - Debits

Financial Account Formula

Negative Current Account balance

Output gap formula

(Actual output - potential output)/Potential output

Aggregate expenditure formula

AE = consumption + planned investment + government purchases + net exports

AE = C + I + G + NX