Macro Formulas Flashcards
(10 cards)
1
Q
MPC
A
1-MPS
2
Q
MPS
A
1-MPC
3
Q
Spending multiplier
A
1/MPS
4
Q
Tax multiplier
A
Spending multiplier - 1
5
Q
Nominal GDP each year
A
Price x quantity
6
Q
Real GDP
A
Base year price x current year quantity
7
Q
GDP Deflator
A
(Nominal GDP)/(Real GDP) x 100
8
Q
Percent Change
A
(y2 - y1) / y1 x 100
9
Q
CPI
A
(Price of market basket) / (Price of market basket in base year) x100
10
Q
Market basket
A
Price x quantity
