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9 Cards in this Set
- Front
- Back
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GDP Equation
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Y=C+I+G+X-IM
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GDP deflator
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(Nominal GDP) / (Real GDP) x100
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Consumer Price Index
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CPI = (Current Basket Value) / (Base Basket Value)
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Inflation Rate
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IR = (CPI 2) - (CPI 1) / (CPI 1)
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Rule Of 70
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# of Years for GDP to double = 70 / (Interest rate)
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Equilibrium Level Of GDP
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Y = AE
AE = Iplanned+C |
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Aggregate Expenditure
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AE = C + Iplanned
(Y=AE is a line with a slope of 1) |
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Inflationary Gap
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Y > Yp
Low unemployment higher wages |
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GDP
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Either:
Y = C + I + G + X - IM or Y = Wages + Profit+ Interest+ Rent |
