Formulas Flashcards
Real GDP
(Nominal / Price Index) x 100
Unemployment Rate
(Number of employed / Labor Force) x 100
Labor Force Participation Rate
(Labor Force / Working Age Population) x 100
Employment- Population Ratio
(Employment / Working Age Population) x 100
Inflation Rate
((This Year’s Price Index) - (Last Year’s Price Index) / Last Year’s Price Index) x 100
Consumer Price Index (CPI)
(Expenditures in the Current Year / Expenditures in the Base Year) x 100
Real Average Hourly Earnings
(Nominal Average Hourly Earnings / CPI) x 100
Nominal Interest Rates (i)nominal
(i)real + Expected Inflation Rate
Future Value (FV)
PV x (1 + i)^n
Present Value (PV)
FV / (1 + i)^n
Present Value for a Stream of Receipts
(R1 / (1 + i)^1) + (R2 / (1 + i)^2) + (R3 / (1 + i)^3) +…(Rn / (1 + i)^n
The Rule of 70
70 / i
Net Present Value
Benefits - Costs
GDP (Y)
C + I + G + NX
Keynesian Multiplier
k = 1 / (1 - MPC)
