End Unit 2 AP Macro Test

market basket formula (real)

= $ yr 1 + $ yr 2 + $ yr 3 …

CPI formula

= ($ of current market basket/$ of market basket in base year)x100

inflation rate formula GDP

% change in $ = [(deflator in yr 2 - deflator in yr 1)/deflator in yr 1]x100

CPI real value formula

= nominal value/($ index (aka CPI)/100)

nominal value formula

= quantity x cost per year

GDP deflator formula

= nominal GDP/real GDPx100

CPI change in prices

= $ base yr x quantities base yr

= $ base yr x quantities specific yr

nominal GDP change in quantities

= quantities specific yr x $ specific yr

real GDP formula

$ of base yr x quantity of base yr

$ of base yr x quantity of specific yr

GDP real rate of output growth

(real GDP yr 2 - real GDP yr 1)/real GDP yr 1 × 100

CPI inflation rate

[(CPI yr 2 - CPI yr 1)/CPI yr 1]x100

CPI nominal value formula

quantities base yr x $ specific yr