AP Macro Formulas

Me personally, watch out for Nom. GDP vs Aggregate Demand as well as Market Basket vs GDP as pairs that can be confused

Nominal GDP

C + I + G + (X - M)

Unemployment Rate

(unemployed / labor force) * 100

Labor Force Participation Rate

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

Natural Rate of Unemployment

frictional + structural

CPI

(MB_GY / MB_BY) * 100

Inflation Rate

((Y₂ - Y₁) / Y₁) * 100

GDP Deflator

(Nominal GDP / Real GDP) * 100

Aggregate Demand

C + I + G + (X - M)

Market Basket Given Year

(current year prices) * (base year quantities)

GDP

(base year prices) * (current year quantities)

Marginal Propensity to Consume

(change in consumption) / (change in disposable income)

Marginal Propensity to Save

(change in savings) / (change in disposable income)

Spending Multiplier (TWO FORMULAS)

(1 / MPS) OR 1 / (1 - MPC)

Tax Multiplier

MPC / MPS

Money Multiplier

1 / rrr

Quantity Theory of Money

M(V) = P(Y)