AP MACRO Unit 2 formulas/ideas

Unemployement Rate

unemployed / labor force x 100

Nominal GDP

total value of goods/services in a country calculated using current market prices of that year

C + I + G + (X - M)
(Consumer Spending) + (Investment) + (Government Spending) + (Exports minus Imports)

Rate of Change

(new - old / old) x 100

GDP Deflator

Nominal GDP / Real GDP x 100

Labor Force

employed + unemployed

Labor Force Participation Rate

Labor Force / Population x 100

Consumer Price Index (CPI)

measures the average change over time in the prices paid by urban consumers for a representative basket of consumer goods and services, used to measure inflation

P of “market basket” current or new / P of “market basket” base or old

x 100

Real GDP

actual change in output, not just price changes

(adjusted for inflation)
nominal GDP / CPI or GDP deflator x 100

nominal - inf

What does the CPI being over 100 tell us?

inflation

What does CPI being below 100 tell us?

deflation

What does CPI at 100 tell us?

is the base, no change