AP Macro: Ultimate Cheat Sheet Model: Formulas Flashcards
1
Q
Labor Participation Rate
A
of ppl in labor force / working age times 100
2
Q
Unemployment Rate
A
of ppl unemployed / # of ppl in labor force times 100
3
Q
% Change in GDP
A
New GDP - Old GDP / Old GDP times 100
4
Q
Consumer Price Index
A
Value of Market / Value in base year times 100
5
Q
GDP Deflator
A
Nominal GDP / Real GDP times 100
6
Q
GDP (Expenditure Approach)
A
Consumption + Investment + Government Spending + Net Exports
7
Q
GDP (Income Approach)
A
Wages + Rent + Interest + Profit
8
Q
MPS
A
1 - MPC
9
Q
Spending Multiplier
A
1/MPC
10
Q
Tax Multiplier
A
MPC / MPS or ( 1/MPS ) - 1
11
Q
Money Multiplier
A
1/reserve requirement
12
Q
Real Interest Rate
A
Nominal Interest Rate - Expected Interest Rate
13
Q
Quanity Theory of Money Equation:
A
M times V = P times Y
