# Macroeconomics Formulas

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

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 Show Answers:

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