Exam 1 formula sheet

Exam 1 formula sheet - Formulas for chapters 3 4 and 9 Long...

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Formulas for chapters 3, 4, and 9 Long run determination of output: MPL = F ( K , L +1) F ( K , L ) MPK = F ( K+1 , L ) F ( K , L ) Cobb-Douglas Production function: Consumption function: C= MPC(Y-T) National Saving = private saving + public saving The quantity equation = M V = P Y The Fisher equation: i = r + Quantity Theory of Money: Y P V M . . Okun’s Law: u Y Y Y Y 2 where u u u Percentage change in actual real GDP = Percentage change in potential (long run level of) output
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