Equations for Exam IINote: I am attempting to be comprehensive with this list, but may have missed something. If you come across an equation that is not on the list, please ask whether or not you should add it to the list for memorization.Chapter 5 EquationsGDP = C + I + G + NXGDP equation from the product approachNX = X – IMnet exports equationKnow how to calculate nominal GDP, constant dollar real GDP, and GDP growth rates. The formulas are given on the “Calculating Nominal and Real GDP…” sheetKnow how to calculate price index values, inflation rates, and real wages. The formulas are given on the “Procedures Guide: Constant Weight Price Index, Inflation…” sheetS ≡ Iclosed economy identity between saving and investmentS ≡ I + NXopen economy identity between saving and investmentgross domestic investment = gross domestic private investment (I) + government investment (GI)foreign borrowing = IM - Xnet saving in an open economy = gross saving – depreciated manufactured capital
This is the end of the preview.
access the rest of the document.