Formulas Flashcards
(35 cards)
Aggregate demand
C+I+G+(X-M)
Average rate of taxation
Tax paid/ income
Cross Elasticity of demand
%change in quantity demanded for product A / %change in price for product B
Equilibrium income
G+I+X = S+T+M
Income Elasticity of demand
% Change in demand / %change in income
Price Elasticity of demand
%change in demand/ % change in price
Price Elasticity of Supply
%change in supply/ % change in price
Raluca GDP
Nominal GDP × (price index base year / price index current year)
Terms of trade index
(Idex of export/ index of imports) ×100
Unemployment rate
(# of people unemployed / # of people in labour) ×100
Average fixed cost
Total fixed cost /output
Average product/ productivity rate
Totals product / #of workers
Average revenue
Total revenue /quantity
Average propensity to consume
Consumption /income
Average propensity to save
Saving /income
Average total cost
Total cost/ output
Average variable cost
Total variable cost /output
Bank credit multiplier
After loans = value of new asset/ value change in liquid asset
In advance= 100/ liquidity ratio
Concentration ratio / Conjoined market share
(Market size of Xn firmas / Total size of market ) ×100
Consumption function
Autonomous consumption + induced consumption
Equi marginal principle
Marginal utility ª /Price ª ≡ Marginal Utility º /Price º
Fisher equation
Money supply × velocity of circulation = price level × output
Gini coefficient
Areas A /Area A +Area B
Marginal cost
Change in cost / change in output
