AP Econ Equations

D-Curve Shifters

# of buyers, income, price of related goods, tastes, expectations

S-Curve Shifters

input prices, technology, # of sellers, expectations

Components of GDP

Y=C+I+G+NX

Production Function

Y=A f(L,K,H,N)

GDP Deflator

(Nominal/Real)*100

Percentage Change

100*(End-Start)/Start

Real Interest Rate (IR)

Real IR=Nominal IR-Inflation

Nominal Interest Rate (IR)

Nominal IR=Real IR+Inflation

Closed Economy GDP

Y=C+I+G

Closed Economy Investment

I=Y-C-G

In a closed economy, saving=

investment

Private Saving (PrS)

PrS=Y-T-C

Public Saving (PbS)

PbS=T-G

National Saving (NS)

NS=Y-C-G

Budget Surplus

T-G=Public Saving

Budget Deficit

G-T=-(Public Saving)

Present Value (PV)

PV=FV/(1+r)^n

Future Value (FV)

FV=PV(1+r)^n

Real GDP

Y

Quantity of Labor

L

Productivity

Y/L

Physical Capital

K

Capital per Worker

K/L

Human Capital

H

Average Workers Human Capital

H/L

Natural Resources

N

Level of Technology

A

Doubling Time

70/x=Time (Years)