Macroeconomics Formulas

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  1. Calculate Unemployment Rate
    To Calculate the unemployment rate divide the # of unemployed by the # of labor force and multiply the result by 100: 

    • Example:
    • unemployed - 150
    • labor Force - 1000

    (150/1000)*100 = 15
  2. Computing a Price Index
    Price Index = (Cost of market basket today/Cost of market basket base year) * 100

    • Example:
    • Price today: $20
    • Price Base year: $25

    (20/25)*100 = $80
  3. Calculate the Real Rate of Interest
    to calculate the real rate of interest you take the nominal rate minus the anticipated rate of inflation:

    • Example:
    • Nominal rate of interest: 12%
    • Anticipated inflation: 8%

    12% - 8% = 4%
  4. Calculate GDP using Expenditure Approach
    GDP = C + I + G + X

    • C = Consumption Expenditures
    • I= Investment Expenditures
    • G= Government Expenditures
    • X= Net Exports
  5. Calculate Real GDP
    Real GDP = (Nominal GDP/Price Index) * 100
  6. Calculate Economic Growth Rate
    Growth Rate =((GDP2 - GDP1)/GDP1) *100%

    • GDP1 - Base Year
    • GDP2 - Growth or current year
  7. Calculate Per Capita GDP
    Per Capita GDP = (GDP/Population)
  8. Calculate Change in Per Capita GDP

Card Set Information

Author:
Gesyca_is_joy
ID:
323713
Filename:
Macroeconomics Formulas
Updated:
2016-10-16 17:28:46
Tags:
Macroeconomics
Folders:
Macroeconomics
Description:
Various information about macroeconomics, formulas and such
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