Macroeconomics Unit 2 Formulas

Employment Rate

(Employed / Labor Force) x 100

Labor Force Participation Rate

(Labor Force / Working Age) x 100

Unemployment Rate

(Unemployed / Labor Force) x 100

CPI

CPI = (Value of market basket at current prices / Value of market basket at base prices) x 100

inflation rate

Inflation Rate = ((CPI current - CPI previous) / (CPI Previous)) x 100

GDP

Real GDP = (Nominal GDP / GDP Deflator) x 100 (d = n/r, do not read)

interest rate

Real Interest Rate = Nominal Interest Rate - Inflation Rate

Wage Rate

Real Wage Rate = (Nominal Wage Rate / CPI) x 100 (c = n/r, can not read)

GDP Expenditure Approach

Y = C + I + G + Nx Y = Income C = Consumption Expenditure I = Investment G = Government Expenditure Nx = Exports - Imports (cigarettes, next)

GDP Income Approach

Y = W + I + R + P Y = Income W = Wages I = Interest R = Rent P = Profit

Velocity

Y x P = M x V Y = Production output P = Price M = Money Numeric Amount V = Velocity (Your Problems = Moreno Valley or Y = MV / P, your movies are over at patrick's)