Important Formulae

Important Formulae - Important Formulae for Midterm 1 Labor...

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Important Formulae for Midterm 1 Labor Force = no. of unemployed + no. of employed Labor force participation rate = (Labor Force / Civilian non inst. population)*100 Total (Actual) Unemployment = Frictional + Structural + Cyclical + Seasonal Natural Rate of Unemployment = Frictional + Structural Employment rate = (# employed/ Civilian non inst. population) * 100 Unemployment rate = (# unemployed/ Civilian labor force) * 100 % change (or growth) of an economic variable = [{current year value – past (base) year value} / past (base) year value] * 100 Example: Inflation between 1998 and 1999 = [(Price level in 1999 – Price level in 1998)/Price level in 1998] * 100 If inflation is negative, it denotes deflation Consumer Price Index = (Cost market basket in current year/cost of market basket in base (earlier) year) * 100 Real Income = Nominal Income/Price Level To convert (inflate ) past wages and prices into current terms: Value in Current Year Dollars = Past Year Nominal Value X [(Price index in
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This note was uploaded on 11/28/2010 for the course ECON 201 taught by Professor Dr.sharma during the Spring '08 term at Ohio State.

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Important Formulae - Important Formulae for Midterm 1 Labor...

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