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38 Cards in this Set
- Front
- Back
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GDP (expenditure approach): |
C+Ig+G+Xn |
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GDP (Income approach): |
W+R+I+P+SA |
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National Income = |
NDP -Indirect business taxas + American income earned abroad - Foreign income earned in US (= "net foreign factor income") |
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Disposable Income = |
Personal Income - Personal Income Tax + credit Card expenditures above income |
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NDP= |
GDP-CFC (consumption of fixed capital (depreciation) |
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Personal Income= |
National Income -- Social Security contributions -- Corporate income tax - Undistributed corporate profits + Transfer payments |
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C= |
Disposable Income- savings - credit card interest payments |
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CPI: |
Price of market basket Price of index year basket X 100 |
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CPI (also): |
Current yr. index- previous year index previous year index X100 |
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GDP deflator/real GDP: |
Nominal GDP Price index X 100 |
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GDP Price index |
Price of GDP goods and service in select year Price of GDP goods and service in base year |
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Unemployment Rate: |
Unemployment # Labor Force # X100 |
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Okun's Law for GDP Gap: |
1 to 2.5% ratio of excess unemployment leading to lost GDP |
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Inflation Rate: |
Current CPI- Index CPU Index CPI X100 |
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Doubling Rate/Rule of 70/72 |
70/72 70/72 Inflation % or Interest rate collected |
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Per Unit Production Cost |
Total input cost Units of output |
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Real Income Measure: |
Nominal Income Price Index (in. 00) |
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Inflation Premium (for lenders): |
Interest rate + anticipated inflation % |
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Real Interest Rate: |
Nominal Interest Rate - Actual inflation rate |
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APC: |
Consumption Income |
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APS: |
Savings Income APC + APS =1 |
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MPC: |
Change in consumption Change in income |
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MPS: |
Change in savings MPC + MPS= 1 Change in Income |
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Aggregate Expenditures / Domestic Output Assumption: |
GDP = C+ Ig |
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Marginal Analysis Multiplier |
1 1 MPS or 1-MPC |
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Ricardian Equivalence Theorem: |
Public budge deficit creates greater private savings |
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M 1: |
Currency + Demand Deposits (checkable) |
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M 2: |
M 1 + non-checkable savings + "small" time deposits (<$100,000) |
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M 3: |
M 2 + "large" time deposits (>$100,000) |
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Price Value of the Dollar: |
1 price level (in.00) |
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Interest Yield on Bonds: |
Annual Interest % Bond Selling Price |
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Reserve Ratio of Deposits: |
Required Reserves Demand-Deposits Liabilities |
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Excess Reserves: |
Actual Reserves- Required Res. |
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Monetary Multiplier: |
1 Required reserve ratio (R) |
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Monetarist Equation of Exchange: |
MV=PQ |
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NI= |
NDP- statistical discrepancy, + net foreign factor income |
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PI= |
NI- Taxes on production and imports, - social security contributions, -corporate income tax,- undistributed corporate profits, + transfer payments |
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Okun's Law= |
1% unemployment above full-employment rate will increase GDP gap by 2 % |
