Econ 114 Formulas

Measure of the overall level of prices. Measures current level relative to prices in the base year.

GDP Deflator = nominal GDP/Read GDP x 100

Unemployment Rate = unemployed/labour force x 100

CPI = cost of basket in current year/cost of basket in base year x 100

inflation rate = CPI this year - CPI last year/CPI last year x 100

• Savings = Disposable Income - Consumption
• S = DI - C

APC = Consumption/Income

APS = Savings/Income

Change in Consumption/Change in Income

MPS = Change in Saving/Change in Income

i = nominal rate - rate of inflation

• Relationship between change in GDP and change in expenditure
• Multiplier = Change in GDP/Change in Spending or Expenditure