Formulas for Unit 02

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Created by
Hana Irfan

Cards (16)

  • Real GDP
    GDP in current prices - change in the price index
  • Nominal GDP growth rate
    Nominal GDP current year - Nominal GDP previous year ÷ nominal GDP previous year x 100
  • Real GDP growth rate
    Real GDP current year - real GDP previous year ÷ real GDP previous year x 100
  • Aggregate demand
    Consumption+Investments+Government expenditure+(exports-imports)
  • Marginal propensity to consume
    Delta C ÷ Delta Y
  • Average propensity to consume
    Consumption ÷ income
  • Disposable income
    Gross income - income taxes - other statutory payments
  • Marginal propensity to save
    Delta S ÷ Delta Y
  • Average propensity to save
    Savings ÷ Income
  • Real interest rate
    Nominal interest rate - rate of inflation
  • Net investments
    Gross investment - depreciation
  • Multiplier
    Change in GDP ÷ Change in the injection
  • Multiplier
    1 ÷ 1 - MPC or 1 ÷ MPW
  • Unemployment rate
    No.of unemployed people ÷ total labor force x 100
  • GDP per capita
    GDP ÷ population
  • GDP
    GDP per capita x population