Formula sheet 1
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This document provides a formula sheet for an economics exam that includes definitions and equations for key macroeconomic concepts and relationships. Some of the formulas defined include: GDP, national income, net national product, gross national product, gross domestic product, personal income, disposable income, government savings, private savings, national savings, direct foreign investment, investment, labor force definitions, unemployment rate, labor force participation rate, inflation calculation, Okun's law, exponential population growth, sources of economic growth, marginal social surplus, consumption function, aggregate demand shock multiplier, and trade balance impact on GDP.
![Formula Sheet: Exam #1
Econ 3133
Dr. Keen
GDP = C + I + G + (X – IM)
National income = Employee compensation + Corporate profits + Proprietors’ income + Rental income of
persons + Net interest
Net national product = National income + Sales and excise taxes + Business transfers – Net subsidies to
government businesses + Statistical discrepancy
Gross national product = Net national product + Depreciation
Gross domestic product = Gross national product – Net factor payments from abroad
Personal income = National income – Contribution for social insurance – Corporate retained earnings + Non-
business interest + Transfer payments from government and business
Disposable income = Personal income – Personal income taxes
Government savings = Taxes – Government spending – Transfer payments – Interest on the government debt
Private savings = GDP + Net factor payments from abroad + Transfer payments + Interest on the government
debt – Taxes – Consumption
National savings = Private savings + Government savings
Direct foreign investment in the U.S. = – Net exports – Net factor payments from abroad
Investment = Private Savings + Government savings + Direct foreign investment in the U.S.
Adult population = Labor force + Not in the labor force
Labor force = Working + Unemployed
Unemployment rate = (Unemployed/Labor force)×100
Labor force participation rate = (Labor force/Adult population)×100
π = (P/P-1 – 1)×100
(Y – Y*)/Y* = – 3×(u – u*)
(Y/AP)n = (Y/AP)×(1 + G)n
%ΔY = %ΔA + (2/3)×%ΔN + (1/3)×%ΔK
MS
= (k×Y – h×R)×P
Yd = (1 – t)×Y
C = a + b×Yd
ΔY = [1/(1 – b×(1 – t))]×ΔI (the same equation holds for a Δa, ΔG, or Δ(X – IM) on the right hand side)
(X – IM) = X – m×Yd
ΔY = [1/(1 – (b – m)×(1 – t))]×ΔI (the same equation holds for a Δa, ΔG, or ΔX on the right hand side)](https://image.slidesharecdn.com/formulasheet1-140422085742-phpapp01/85/Formula-sheet-1-1-320.jpg)
Formula sheet 1
- 1. Formula Sheet: Exam #1 Econ 3133 Dr. Keen GDP = C + I + G + (X – IM) National income = Employee compensation + Corporate profits + Proprietors’ income + Rental income of persons + Net interest Net national product = National income + Sales and excise taxes + Business transfers – Net subsidies to government businesses + Statistical discrepancy Gross national product = Net national product + Depreciation Gross domestic product = Gross national product – Net factor payments from abroad Personal income = National income – Contribution for social insurance – Corporate retained earnings + Non- business interest + Transfer payments from government and business Disposable income = Personal income – Personal income taxes Government savings = Taxes – Government spending – Transfer payments – Interest on the government debt Private savings = GDP + Net factor payments from abroad + Transfer payments + Interest on the government debt – Taxes – Consumption National savings = Private savings + Government savings Direct foreign investment in the U.S. = – Net exports – Net factor payments from abroad Investment = Private Savings + Government savings + Direct foreign investment in the U.S. Adult population = Labor force + Not in the labor force Labor force = Working + Unemployed Unemployment rate = (Unemployed/Labor force)×100 Labor force participation rate = (Labor force/Adult population)×100 π = (P/P-1 – 1)×100 (Y – Y*)/Y* = – 3×(u – u*) (Y/AP)n = (Y/AP)×(1 + G)n %ΔY = %ΔA + (2/3)×%ΔN + (1/3)×%ΔK MS = (k×Y – h×R)×P Yd = (1 – t)×Y C = a + b×Yd ΔY = [1/(1 – b×(1 – t))]×ΔI (the same equation holds for a Δa, ΔG, or Δ(X – IM) on the right hand side) (X – IM) = X – m×Yd ΔY = [1/(1 – (b – m)×(1 – t))]×ΔI (the same equation holds for a Δa, ΔG, or ΔX on the right hand side)