formulas for economics-1

formulas for economics-1 - GDP Deflator = (Nom GDP / Real...

This preview shows page 1. Sign up to view the full content.

Elasticity Price Elasticity of Demand = % Change in Qty Demanded / % Change in Price XED = Crossprice ED = % Qty Demanded of product 2 / % Change in Price of product 1 IED = Income Elasticity of Demand = % Qty Demanded / % Chg Income Price Elasticity of Supply = % change in Qty Supplied / % change in Price If Elasticity > 1, elastic, < 1 = inelastic Horizontal line = Perfectly Elastic Vertical = Completely inelastic Midpoint method (B2-B1)/(B2+B1) / (A2-A1)/(A2+A1) B is what’s getting affected, A is what’s changing, so generally is B=Qty, A=Price GDP and CPI Nominal GDP = full price X qty of everything now Real GDP = this years qty vs. the prices in a base year
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: GDP Deflator = (Nom GDP / Real GDP) - 1 GDP Per Capita = GDP / population CPI = (“baskey of goods” qty * price this year / original base year) CPI = 1 + inflation rate (e.g. if base year is 100, and 10% inflation, its 110) = ratio of this years costs to a base year. S = Y – C - G Y = C + I + G + Nx (Cigarettes!) Y = GDP, I = National saving (or aggregate saving) Government Savings = Sg = NT – G = Net Tax – Government Spending Trade Balance = X – M = NX (e X ports minus i M ports) Net exports equals NCO (Net Capital Outflow)...
View Full Document

This note was uploaded on 01/31/2010 for the course ECON 1000 at Colorado.

Ask a homework question - tutors are online