Macro equations

Question 1

GDP equation

Answer 1

y= C+ I +G + Nx

Question 1

Net exports

Answer 1

exports-imports

Question 2

GDP Deflator

Answer 2

(nominal GDP/real GDP) x 100

Question 3

Inflation equation

Answer 3

(CPI current - CPI base) / CPI base x 100

Question 4

CPI

Answer 4

(price in current year / price in base year) x 100

Question 5

Turning $ from year T to today’s

Answer 5

amount in year T dollars x (price level today/price level in year T)

Question 6

Nominal GDP

Answer 6

sum (P x Q)

Question 6

Real interest rate

Answer 6

nominal interest rate - inflation rate

Question 7

Labor force

Answer 7

sum of employed and unemployed

Question 8

Unemployment

Answer 8

(# of unemployed/labor force) x 100

Question 9

Labor force participation

Answer 9

(labor force/ adult population) x 100