Economics: GDP, Unemployment, Inflation, and Price Index Formulas

What is the formula for calculating GDP?

GDP = PxQ, where P is price and Q is quantity.

What components make up Nominal GDP?

Nominal GDP is calculated as C + I + G + (X - IM), where C is consumption, I is investment, G is government spending, X is exports, and IM is imports.

How does Nominal GDP differ from Real GDP?

Nominal GDP uses current year prices, while Real GDP uses prices from a previous year (base year).

What is the formula for calculating the GDP deflator?

GDP deflator = (Nominal GDP / Real GDP) x 100.

How is GDP per Capita calculated?

GDP per Capita = Real GDP / country population.

What is the formula for calculating the Unemployment Rate?

Unemployment Rate = 100 x (unemployed / labor force).

What is the Labor Force Participation Rate?

Labor Force Participation Rate = 100 x (Labor Force) / (civilian population aged 16 and over).

What constitutes the Labor Force?

Labor Force = Unemployed + Employed.

What is the Natural Rate of Unemployment?

Natural Rate of Unemployment = frictional unemployment + structural unemployment.

What is the formula for calculating Inflation?

Inflation = (price 2 - price 1) / price 1 x 100.

What does Real Income represent?

Real Income is adjusted for inflation, reflecting purchasing power.

How is a Price Index calculated for a given year?

Price Index = 100 x (Market Basket in current year / Market Basket in base year).