ap macro equations

bruh

rate of change

new - old / old * 100

real GDP

• GDPr = nom GDP / GDP deflator * 100

• nom GDP - inflation rate

GDP deflator

nom GDP / GDPr x 100

nominal GDP

• GDPr * (GDP deflator / 100)

GDP per capita

GDP / population

labor force participation rate

LFPR = labor force / population * 100

unemployment rate

• UR = # unemployed / labor force * 100

natural rate unemployment

• NRU = frictional + structural

• no cyclical

  • NRU = actual - cyclical

MPC + MPS

= 1

MPC

∆ consumption / ∆ DI

MPS

∆ savings / ∆ DI

spending multiplier

• 1 / MPS

  • use to find ∆GDPr

    • → 1 / MPS * min change

tax multiplier

• - MPC / MPS

  • taxes indirect → “-1”

real interest rates

RIR = NIR - inflation

money multiplier

• 1 / rr

  • find max ∆

    • → 1 / rr * deposits

balance of payments

• CA + CFA = 0

  • offsets: CA surplus, CFA deficit, vv.