Macroeconomics

• Gross national income=

  Gross domestic product + net income from abroad
• Index number=

  Raw number / base year raw number X 100
• Weighted index=

  Index of price change X the weights
• Output:

  Output = Income = Expenditure
• Aggregate Demand=

  Consumption + Investment + Government Spending + (Exports-Imports)
• Weighted inflation rate=

  Σ(price change x weight) / Σweights
• MPC=

  Change in consumption/ change in income
• MPS=

  Change in saving / change in income
• Multiplier=

  1/ 1-MPC
• The current balance=

  Exports - imports
• Real interest rate =

  Nominal interest rate - inflation rate
• Productivity =

  Output / input
• Yield =

  Coupon / market price X 100
• Liquidity ratio =

  Liquid assets / liabilities of a bank