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)