question
Real GDP equation
answer
quantity x base year price
question
Nominal GDP equation
answer
quantity x current price
question
GDP deflator
answer
Nominal GDP/Real GDP x 100
question
CPI equation
answer
(cost of basket in current year/cost of basket in base year) x 100
question
Inflation equation
answer
CPI2-CPI1/CPI1 x 100
question
growth rate equation
answer
(GDPD year 2 - GDPD year 1)/GDPD year 1
question
core inflation rate
answer
the rate of inflation excluding the effects of food and energy prices, so:
use cpi equation (without food and energy prices) and inflation equation
use cpi equation (without food and energy prices) and inflation equation
question
headline inflation rate
answer
inflation equation
question
real wages formula
answer
Nominal wages (percent change) - inflation
question
real price equation
answer
(CPI base year/ CPI now) x Nominal Price
question
real interest rate equation
answer
nominal interest rate - inflation rate
question
Real GDP per capita
answer
real GDP divided by the total population of a country
question
growth rate formula (avg annual growth rate of anything)
answer
((final value/intial value)^(1/years between))-1 (*100 for percent) [use GDP]
question
Rule of 70 formula
answer
number of years to double = 70/growth rate
question
per-worker production function
answer
Y/L = A * (K/L)^.3
question
real GDP per person is determined by the percent of the population that works and labor productivity
answer
Y/pop = (L/pop)•(Y/L))
question
number employed
answer
labor force - unemployed
question
unemployment rate
answer
unemployed/labor force x 100
question
labor force
answer
employed + unemployed
question
labor force participation rate
answer
labor force/population ages 16 and up x 100
question
prime age labor force participation rate
answer
those ages 25-54 in labor force / all those ages 25-54
question
normal rate of unemployment
answer
(frictional + structural)/labor force
question
U-6 unemployment rate
answer
Total unemployed + all persons marginally attached to the labor force + total employed part time for economic reasons/ labor force + all persons marginally attached to the labor force
question
government budget deficit
answer
federal expenditures (spending) - federal taxes (tax revenue)
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