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16 Cards in this Set
- Front
- Back
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nGDP=
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(money)(velocity)= nGDP= (price)(real output)
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currency spread
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% spread= ((ask price- bid price)/ask price)*100
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marginal propensity to consume (MPC)
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additional consumption/additional income
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marginal utility divided by price must be equal
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Marginal utility of product X divided by the price of product X must equal marginal utility of product Y divided by the price of product Y
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forward discount
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forward discount= forward rate- spot rate= negative number
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rGDP (current period)
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nGDP<cp> * (GDP deflator<baseyear>/GDP deflator<cp>)
<>= time period not multiplier |
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price elasticity of demand
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% change in quantity demanded/ % change of price
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income elasticity of demand
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% change in quantity demanded/% change in income
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inflation rate (i)
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(this year's price index- last year's price index)/last year's price index
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income elasticity of demand
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% change in quantity demanded/% change in income
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unemployment rate
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(# of unemployed)/(# in labor force)
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expenditures multiplier (M)
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1/ (1-MPC)
MPC= marginal propensity to consume |
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marginal revenue (MR)
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marginal cost (MC)
MR=MC |
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forward premium
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forward premium= forward rate- spot rate= positive number
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rGDP
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planned C + I + G + NX
C= consumer I= investment G= government NX= net export |
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balance of payments
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current account + capital account + official reserve account = 0
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