Formulas Flashcards
(10 cards)
1
Q
Unemployment rate
A
Unemployed/economically active population x100
2
Q
Nominal GDP, real GDP and inflation
A
Nominal GDP = real GDP growth + inflation rate
3
Q
Multiplier effect using marginal propensity to consume
A
1/1-MPC
4
Q
Multiplier effect using marginal propensity to save
A
1/MPS
5
Q
Multiplier effect using change in national income and injections
A
Change in national income/injections
6
Q
Yield using coupon rate and market price
A
Coupon rate/market price x100
7
Q
Change in consumption using national income and MPC
A
Change in consumption = MPC x change in national income
8
Q
Price index
A
New/base year x100
9
Q
Rate of returns
A
Profit/investment x100
10
Q
Real GDP
A
Nominal GDP/price index x100
