AP Macro Econ Unit 2 Equations

% Change in GDP (inflation rate)

(year 2 - year 1) ÷ year 1

Gross Domestic Product

C + I + G + Xn

Real GDP

current year production × base year price

real GDp per capital

real GDP ÷ total population

consumer surplus

buyer's maximum - price

producer surplus

price - seller's minimum

unemployment rate

(# unemployed ÷ # in labor force) × 100

Natural Rate of Unempoyment

structural + frictional

Consumer Price Index

(Price of Market Basket ÷ Price of Market Basket in base year) × 100

GDP Deflator

(Nominal GDP ÷ Real GDP) × 100

M × V

P × Y