AP Macroeconomics Formulas

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Last updated 4:35 AM on 8/12/26
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16 Terms

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Nominal GDP

C+I+G+(X-M)

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Unemployment Rate

(unemployed/labor force) x 100

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Labor Force Participation Rate

(labor force/working age, noninstitutionalized population) x 100

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Natural Rate of Unemployment

frictional+structural

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CPI

(MBGY /MBBY) x 100

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Inflation Rate

((Y2 -Y1)/Y1) x 100

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GDP Deflator

(Nominal GDP/Real GDP) x 100 

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Aggregate Demand

C+I+G+(X-M)

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Market Basket Given Year

(Current year prices x base year quantities) 

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GDP

(Base year prices x current year quantities) 

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Marginal Propensity to Consume

Change in consumption/change in disposable income

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Marginal Propensity to Save

Change in savings/change in disposable income

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Spending Multiplier

(1/MPS) or 1/(1-MPC)

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Tax Multiplier

MPC/MPS

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Money Multiplier

1/rrr

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Quantity Theory of Money

M(V)=P(Y)