Essnetial Paper 2 Formulas Flashcards
(9 cards)
1
Q
Real GDP formula
A
Nominal GDP / GDP deflator x 100
2
Q
GDP
A
C+I+G (X-M)
3
Q
Real interest rate
A
Nominal interest rate - inflation rate
4
Q
GNI
A
GDP + net factor income from abroad
5
Q
Real GDP growth rate
A
(Real GDP in Y2 - Real GDP in Y1) / Real GDP in Y1
x 100
6
Q
Current account balance
A
(Exports - imports) + net income + net current transfers
7
Q
Income elasticity of demand
A
% Change in quantity demanded / % Change in income
8
Q
Profit max point
A
MC = MR
9
Q
Allocative efficiency
A
AR = MC
