Econ exam 3 equations

GDP equation

Y = C + I + G + NX

NX equation

Net exports - net inports

CPI base yr index equation

100x (cost of basket in current yr/ cost of basket in base yr)

Inflation rate equation

Inflation rate = [(CPI this year - CPI last year)/ CPI last year] x 100%

Productivity equation

Productivity = Y (real GDP/Qty of output produced)/ L(Qty of labor)

Capital per worker equation

Physical capita/Qty of labor (K/L)

Average worker’s human capital

H (human capital)/L (Qty of labor)

Average natural resrouces

N/L

Production function to productivity

Y= A*F(L,K,H,N)

private

=Y - T - C

public

= T - G

budget surplus

= T-G

Budget Deficit

= T -G

National Savings

Y-C-G (PuB + PrS)

National Inc.

 Y=C+I+G (closed Economy)

Investment

I=Y-C-G

Unemployment rate (U-rate)

100x (# of unemployed/ labor force)

Labor force participation rate:

100x (labor force/ adult population)

Money Supply =

Currency + Deposits

Money Multiplier: MM=

1/R

Money Supply

 = MM x bank reserves + currency 

Nominal GDP=

PxY

Velocity of Money =

= (P x Y)/M

Quantity equation

M x V = P x Y