ap macroecon

nom. gdp = real gdp x deflator

UR = # unemployed / # in labor force x 100%

LFPR = labor force / working age pop x 100%

CPI (of a) = cost of basket in yr a / cost of basket in base yr x 100

CPI = yr u wanna know / base year x 100

inflation rate = CPI (new) - CPI (old) / CPI (old) x 100

lowest point of contraction

highest point in expansion

mpc = change in spending / change in income

• mps = change in savings / change in income
• mps = 1 - mps

• spen multi = 1 / mps
• = 1 / 1 - mpc

• = - mpc / mps
• = mpc x 1 / mps

change in gdp = multiplier x change

• x - real GDP
• y - price level

real interest rate = nominal - expected inflation

cash in circulation + bank reserves

cash in circulation + checkable bank deposits + traveler's checks

mm = 1 / reserve requirement

amm = money supply / monetary base

• x = quantity of loanable funds
• y = real interest rate

• x = quantity of money 
• y = nominal interest rate

• MV = PY
• money supply x velocity of money = price level x real gdp (same as nominal gdp)

• x - unemployment rate %
• y - inflation rate %

shift in aggregate supply (left shift = right srpc shift)

net exports + investment income + net transfers

buy or sell assets abroad

CA = -CFA

• exchange rate (a) = # currency b / currency a
• domestic rate = foreign / domestic

comparative advantage of a = qty b (give up) / quantity a (gain)

unemployed bc of recession

temporary / inbetween jobs