Ap macro equations

Opportunity cost of each unit of good X

(Y1-Y2)/(X1-X2)

Nominal GDP

Real GDP X GDP deflator

Unemployment rate

#unemployed/# in labor force x 100

LFPR (% of eligible population in labor force)

LF/ eligible population x 100

CPI (Consumer Price Index)

Cost of basket in year t/ Cost of basket base year x 100

Inflation rate

CPInew - CPIold/ CPIold x 100

Real GDP

Nominal GDP/ GDP deflator(in hundrendths)

MPC

Change in spending/change in income

Expenditure multiplier

1/1-MPC

Tax multiplier

-MPC/MPS

Nominal Interest rate

real interest rate + expected inflation

Real interest rate

nominal interest rate - inflation rate

Excess reserves

(Deposits - reserves) x money multiplier