AP Macroeconomics Formulas

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Last updated 3:22 AM on 4/24/26
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13 Terms

1
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GDP

Consumption + Investment + Government Spending + Net Exports

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MPC

Change in Consumption / Change in Disposable Income

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MPS

Change in Savings / Change in Disposable Income

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MPC + MPS

1

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Spending Multiplier

1 / MPS

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Tax Multiplier

MPC / MPS

7
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Balanced Budget Multiplier

1

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Simple Money Multiplier

1 / RR

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Money Expansion

Money Multiplier * Excess Reserves

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Real GDP

(Nominal GDP / GDP Deflator) * 100

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Real Interest Rate

Nominal Interest Rate - Inflation Rate

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Inflation Rate via CPI

(Current CPI - Last CPI) / Last CPI

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Price Index

(Current Year Market Basket / Base Year Market Basket) * 100