Home > Preview
The flashcards below were created by user
Gesyca_is_joy
on FreezingBlue Flashcards.

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

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

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%

Calculate GDP using Expenditure Approach
GDP = C + I + G + X
 C = Consumption Expenditures
 I= Investment Expenditures
 G= Government Expenditures
 X= Net Exports

Calculate Real GDP
Real GDP = (Nominal GDP/Price Index) * 100

Calculate Economic Growth Rate
Growth Rate =((GDP _{2}  GDP _{1})/GDP _{1}) *100%
 GDP_{1}  Base Year
 GDP_{2}  Growth or current year

Calculate Per Capita GDP
Per Capita GDP = (GDP/Population)

Calculate Change in Per Capita GDP

