Macro Equations Flashcards by Tom Robjohns

Q

Real wage rates

A

Wr=Wn/p

Wn= nominal wage

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Q

Inflation rate

A

Inflation rate (pi symbol)

=P(t)P(t-1)/p(t-1) X 100

P(t)-price index for that year

P(t-1)- price index year before

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Q

Mpc

A

Change in consumption / change in income

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Q

Injections multiplier

A

K= 1/now

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