AP Macro All Formulas

O.C. good X in terms of good Y

Y/X

GDP(expenditure approach)

Exports - Imports

GDP(income approach)

rent + wages + interest + profit

GDP(value added approach)

Sales - input cost

Civilian Labor Force

Employed + Unemployed

Laboar Force Participation Rate

CLF/WAP * 100

Unemployment rate

Unemp/clf * 100

CPI

Basket today/ basket base*100

CPI in the base year

100

Inflation rate (using CPI)

New-old/old * 100

Nominal GDP (using a chart of goods and prices)

q today * P base

GDP Deflator

Nom GDP / Real GDP * 100

Real GDP using Deflator

Nom/defl * 100

MPC (in terms of spending and disposable income)

change in spending / Change in disposable income

GDP deflator in base year

100

Real GDP base year

Nominal GDP

Real GDP per capita

Real GDP / Population (no * 100)

MPs( in terms of savings and disposable income)

change in savings/change in disposible income

MPS + MPC

100% of 1

Spending mulitplier(rgdp)

change in rgdp/change in spending

Spending Multiplier (mps)

1/mps

Spending Mulitplier (Change in spending

change in rgdp/change in spending

Spending mulitplier(mps)

1/mps

tax mulitplier

spending multiplier - 1

tax Mulitplier (change in taxes)

change in rgdp/change in taxes

NIR(in terms of real and expected inflation)

rir + infl

RIR(in terms of nominal and expected inflation)

nir-infl

Reserve Requirement

% of reserves bank must keep

Required Reserves

Money in deposits * RR

Excess Reserves

$ in deposits - $ in required Reserves

Max a single bank can loan

excess reserves

Money Multiplier

1/RR

Max total change in loans

Money in loans * Money Multiplier

Max total change in desposits

Deposits * Money Multiplier

Max total change in money supply because of a deposit

excess * money mulitplier

Max total change in money supply because of bonds

bonds * money multiplier

Monetary Equation

MV=PY (Y is constant)

Current Account + Captial/Financial Account

0

Exchange rate of the dollar in terms of the Euro

Euro / Dollar