Economics Formulas

studied byStudied by 2 people
5.0(1)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 28

flashcard set

Earn XP

Description and Tags

29 Terms

1

Per-Unit Opportunity Cost

Opportunity Cost/ Unit Gained

New cards
2

GDP (Expenditure Approach)

C + G + I + (E-I)

New cards
3

GDP (Income Approach)

Wages + Rent + Interest + Profit

New cards
4

GDP Growth Rate Formula

[(Year 2 GDP - Year 1 GDP) / Year 1 GDP] × 100

New cards
5

GDP Deflator

(Nominal GDP/Real GDP) x 100

New cards
6

or GDP Deflator

(Price of selected goods in current year/Price of selected goods in base year) x 100

New cards
7

Real GDP

(Nominal GDP/GDP Deflator) x 100

New cards
8

Output Growth

[(Year 2 GDP - Year 1 GDP) / Year 1 GDP] × 100

New cards
9

CPI

(Cost of market basket/Cost of market basket in base year) x 100

New cards
10

Inflation Rate (using CPI)

[(Year 2 CPI - Year 1 CPI)/Year 1 CPI] x 100

New cards
11

Inflation Rate (using GDP Deflator)

[(Year 2 GDP Deflator - Year 1 GDP Deflator)/Year 1 GDP Deflator] x 100

New cards
12

Labor Force

Employed + Unemployed

New cards
13

Labor Force Participation Rate

(Labor Force/Working Age Pop.) x 100

New cards
14

Unemployment Rate

(Num of Unemployed/Num in Labor force) x 100

New cards
15

Real GDP Growth Rate (also works for interest rate and income growth rate)

Nominal GDP Growth Rate - Inflation Rate

New cards
16

Nominal GDP Growth Rate (also works for interest rate and income growth rate)

Real GDP Growth Rate + Inflation Rate

New cards
17

MPC

Change in spending / Change in disposable income

New cards
18

MPS

Change in Saving/Change in disposable income

New cards
19

MPS + MPC =

1

New cards
20

Spending Multiplier

1/MPS

New cards
21

Tax Multiplier

-MPC/MPS

New cards
22

Change in GDP (or AD or Income) (Spending Multiplier)

Change in Spending X Spending Multiplier

New cards
23

Change in GDP (or Ad or Income) (Tax Multiplier)

Change in Taxes X Tax multiplier

New cards
24

Money Multiplier

1/Reserve Requirement

New cards
25

Change in the Money Supply

Change in Excess Reserves X Money Multiplier

New cards
26

Real Interest Rate (Fisher Equation)

Nominal interest rate – Inflation rate

New cards
27

Nominal Interest Rate (Fisher Equation)

Real interest rate + Inflation rate

New cards
28

Quantity Theory of Money

MV = PY (Money Supply X Velocity of Money = Price level X Real Output)

New cards
29

Another way to write Quantity Theory of Money

MV = Nominal GDP

New cards

Explore top notes

note Note
studied byStudied by 1 person
783 days ago
5.0(1)
note Note
studied byStudied by 80 people
844 days ago
5.0(1)
note Note
studied byStudied by 8 people
736 days ago
5.0(1)
note Note
studied byStudied by 64 people
410 days ago
5.0(1)
note Note
studied byStudied by 11 people
929 days ago
5.0(1)
note Note
studied byStudied by 281 people
132 days ago
4.0(3)
note Note
studied byStudied by 14 people
279 days ago
5.0(1)
note Note
studied byStudied by 14902 people
675 days ago
4.9(44)

Explore top flashcards

flashcards Flashcard (34)
studied byStudied by 28 people
170 days ago
5.0(1)
flashcards Flashcard (38)
studied byStudied by 187 people
500 days ago
4.4(11)
flashcards Flashcard (62)
studied byStudied by 12 people
340 days ago
5.0(1)
flashcards Flashcard (169)
studied byStudied by 8 people
97 days ago
5.0(1)
flashcards Flashcard (50)
studied byStudied by 8 people
767 days ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 4 people
826 days ago
5.0(1)
flashcards Flashcard (61)
studied byStudied by 37 people
460 days ago
5.0(1)
flashcards Flashcard (43)
studied byStudied by 79 people
24 minutes ago
5.0(2)
robot