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Flashcards in Exam 1 Formulas Deck (11):
1

CPI=

(Price of basket year current year/price of basket in previous year) x 100

2

Inflation rate formula =

(CPI current year-CPI base year)/CPI base year x 100

3

If deflation happens...

Real income goes up

4

Percentage change in prices=

(CPI current year - CPI base year)-(CPI base year) x100

5

Unemployment rate =

Number of unemployed persons / employed + unemployed

6

Employment rate =

Number of employed persons / Civilian no constitutional population (not in labor force + unemployed + employed)

7

Frictional unemployed =

# of frictional unemployed persons /civilian labor force

8

Structural unemployment =

# structurally unemployed persons / civilian labor force

9

Natural unemployment =

Structural rate of employment + functional rate of employment

10

Real income =

(Nominal income/CPI)x100

11

Percentage change in real income =

Percentage change in income - percentage change in the inflation rate