ap macro equartions and shifters

AD shifters

C + i + G + (X-M)

SRAS shifters

PILE (productivity, inputs, laws and regulations, expectations of inflation)

labor force

employed + unemployed

unemployment rate

unemployed / labor force x 100

labor force partcpation rate

labor force / working age population x 100

natural rate of unemployment AKA full employment

frictional + structural

CPI

current year PxQ / base year PxQ

inflation is

change in CPI, n-o/o

gdp deflator

nominal/real x100

y axis on money market graph

nominal interest rate

MD shifters

ACRONYM GIRT C + I + G (X-M), inflation (people want more money to hold when prices go up), risks, technology 

MS shifters

OMO (buying selling bonds) reserve requirement (amount of money banks are required to hold) and discount rate (interest the fed charges banks to borrow money)

excess reserves

actual - required

money mutlipler and what is it

how much money a bank can create, 1/rr

loanable funds y axis

real interest rate

MPC

change in consumption / change in disposable income, higher will cause people to want to spend more

MPS

change in savings / change in disposable income

MPS + MPC = ?

1

spending multiplier (how much gdp increases based on spending)

1/MPS OR 1/1-MPC

tax multiplier (how much an increase/decrease in tax changes money supply)

-MPC/MPS OR -MPC/1-MPC

money multiplier

1/rr

quantity theory of money

MV = PY

MV and PY repsectively also both equal

nominal GDP

unemployment gap =

actual - full

what causes a movement along SRPC?

shift of AD

what causes a shift of SRPC?

a shift of SRAS

shifters of demand for $A and $A

TIPSI; tastes/preferences, income, price level (inflation), speculations about worth, interest rates

x axis of ADAS

real gdp

current account

exports - imports, things coming in and out of country

financial account

movement of money and assets, ex: japanese investors buying US stocks

CA + FA =

0

how does a country appreciate its own currency?

it buys its own currency, decreasing supply

how does a country depreciate its own currency?

it sells its own currency, increasing supply