Macroeconomics Practice Flashcards

Calculations and formulas for Gross Domestic Product, Unemployment Rate, and Inflation measures based on the lecture material.

GDP (Expenditures Method)

$$GDP = C++ G + (X - M)$$

Real GDP

\text{Real GDP} = \text{Nominal GDP} div (\text{Price Index} div 100)

Unemployment Rate

$$\text{Unemployment Rate} = \frac{\text{Unemployed}}{\text{Labor Force}} \times 100$$

Inflation Rate

$$\text{Inflation Rate} = \frac{\text{New CPI} - \text{Old CPI}}{\text{Old CPI}} \times 100$$

Consumer Price Index (CPI)

$$\text{CPI} = \frac{\text{Cost of Basket in Current Year}}{\text{Cost of Basket in Base Year}} \times 100$$