IB Economics SL Math Formulas

Percent change =

new-old/old x 100

Price elasticity of demand =

% change in quantity demanded / % change in price

Price elasticity of supply =

% change in quantity supplied / % change in price

GDP and Aggregate Demand =

C + I + G + (X-M)

Real GDP =

Nominal GDP/GDP Deflator x 100

GDP per capita =

real GDP/population

GDP deflator =

Nominal GDP/Real GDP x 100

Economic growth rate =

(GDP2 - GDP1)/(GDP1)

Inflation rate =

(Price index in year 2 - price index in year 1)/(Price index in year 1) x 100

Consumer Price Index (CPI)=

Market Basket Current Year/Market Basket Base year X100

Unemployment rate =

unemployed/labor force x 100

Inflation =

(CPI year 2 - CPI year 1) / (CPI year 1) x 100

Current Account=

Exports- Imports+Income+Current Transfers (Net exports can also be broken down by goods and services instead)

Capital Account=

Capital Transfers+Debt Forgiveness+Non-Financial Transactions

Financial Account=

Foreign Direct Investment+Portfolio Investment+Reserve Assets

Balance of Payments=

(Current)+(Capital+Financial)=0

Labour Force=

Population-Discouraged workers-informal economy-retired-workers under 18-students

YED=

% change of quantity demanded/% change in income

GNI=

GDP+inflows-Outflows

Real GDP=

Nominal GDP/GDP DeflatorX100

Total Revenue=

PriceXQuantity

Real Interest Rates=

Nominal Interest rates%-Inflation%