Equation Sheet

# Equation Sheet - a &amp;amp;gt; 0 Multiplier = 1 / (1 MPC)...

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Equation Sheet Y = C + I + G + NX Y = C + I + G S = (Y – T – C) + (T – G) National Saving = Private Savings – Public If r is the interest rate, then an amount X to be received in N years has a present value: ( + ) X 1 r N Unemployment rate = # of unemployedLabor Force x 100 Labor-force Participation Rate = Labor ForceAdult Population x 100 Money multipier: If R is the reserve ratio for all banks in the economy, then each dollar of reserves generates 1R dollars of money Velocity of Money: V = ( ) P x Y M M x V = P x Y y = y + a ( P – E (P) ) Quantity of output supplied = natural rate of output + a (price level – expected price level)
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Unformatted text preview: a &gt; 0 Multiplier = 1 / (1 MPC) MPC = the fraction of extra income that a household consumes rather than saves GDP deflator = Nominal GDPReal GDP x 100 CPI: = Price of basket of goods and servicesPrice of basket in base year x 100 (1/R) A 0 = MS NCO = purchase of foreign assets by domestic residents purchase of domestic assets by foreign residents NCO = NX NX = exports imports S = I + NX S = I + NCO Real Exchange Rate = Nominal Exchange Rate x Domestic PriceForeign Price x 100 * e x PP with PPP e = P*/P...
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## This note was uploaded on 03/18/2009 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.

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