Exam 2 notes - ~ Real wage rate of year=[Nominal Wage in ~...

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Net exports = exports – imports ~ GDP= all final goods+all final services ~ C=Consumption Expenditure ~ I=Investment ~ G=Government Purchases ~ NX=Net Exports ~ Y=GDP ~ X=Exports ~ IM=Imports ~ D=Domestic imports ~ F=Foreign purchases ~ GDP=C+I+G+NX ~ CD+ID+GD+X=Y ~ Definition of Imports: CF+IF+GF-IM=0 ~ NX=X- IM ~ Y=C+I+G+NX ~ Spr=Private Saving ~ SPU=Public Saving ~ S=National saving ~ Spr=(Y-T)-C ~ Spu=T- G ~ S=Y-C-G ~ S=I+NX ~ GDP = labor income + capital income ~ WAP=Working age population ~ E=Employed ~ U=Unemployed ~ L=Labor Force ~ NILF=Not in labor force ~ L= E+U ~ Unemployment rate=U/L ~ Participation Rate=Labor Force/population 16 and over ~ NILF=WAP- L ~ Labor Force Participation Rate=L/WAP ~ GDP Deflator=P ~ Consumer Price Index=CPI ~ Inflation rate = [CPI current year-CPI previous year]/[CPI previous year]
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Unformatted text preview: ~ Real wage rate of year=[Nominal Wage in ~ year/CPI year]*100 ~ RGDP=Real GDP ~ NGDP=Nominal GDP ~ RGPD=(NGDP/P) ~ r=real interest rate ~ i=nominal, market, interest rate ~ p=inflation rate ~ p=[(P1-P0)/P0] ~ Money supply =Currency held by the public +bank deposits ~ P*=Potential Real GDP ~ U*=Natural rate of unemployment ~ Cyclical ~ unemployment=U-U* ~ MxV=YxP ~ (M/P)xV=Y ~ IP=Planned Investment ~ IU=Unplanned ~ I=Actual investment ~ I=IP+IU ~ PAE=Planned Expenditure ~ PAE=C+IP+G+NX ~ Y=C+IP+G+NX ~ YCGIP=NX=XIM ~ IM=(IP+X)(YCG) ~ MER=Marginal ~ Expenditure Rate ~ PAE=(MER)xY+Ap...
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This note was uploaded on 02/01/2011 for the course EC 202 taught by Professor Obst during the Spring '08 term at Michigan State University.

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