Formulas for Macro Hl

Question 1

Nominal GDP

Answer 1

C + I + G + (X-M)

Question 2

GNI (Gross National Income)

Answer 2

GDP + income from abroad − income sent abroad

Question 3

GDP Deflator

Answer 3

(Nominal GDP/ Real GDP) x 100

Question 4

Real GDP

Answer 4

(Nominal GDP/Price Deflator) x 100

Question 5

GDP Per Capita

Answer 5

Total GDP/Population

Question 6

GNI Per Capita

Answer 6

Total GNI/Population

Question 7

Real GDP Per Capita

Answer 7

Real GDP/Population

Question 8

Labor Force

Answer 8

number of unemployed + number of employed

Question 9

Unemployment Rate

Answer 9

(number of unemployed/Labor force) x 100

Question 10

Inflation Rate Based on CPI

Answer 10

[CPI(final) - CPI(initial) /CPI (initial)]x 100

Question 11

Rate of Economic Growth

Answer 11

[real GDP(final) - real GDP(initial)/real GDP(initial)] x 100
- if the annual growth rate is negative, then the economy is in a recession

Question 12

Real Interest Rate

Answer 12

Nominal interest rate - inflation rate

Question 13

Price Index for a Specific Year

Answer 13

(value of a basket in a specific year/value of same basket in base year) x 100

Question 14

GINI Coefficient

Answer 14

area between diagonal and lorenz curve/Entire area under diagonal OR A/A+B

Question 15

Marginal Tax Rate

Answer 15

The tax rate paid on additional income, or on the last amount of tax paid, expressed as a percentage.

Question 16

Total Tax Rate

Answer 16

Sum of income tax paid (determined by the marginal tax rates)

Question 17

Average Tax Rate

Answer 17

(total tax paid/total income) x 100