Econ Notes: Formulas Masterpost

All the formulas in one post! ☺
  1. GDP
  2. Budget
  3. Trade
  4. National Income
  5. Disposable Income (DPI)
  6. Net Domestic Product (NDP)
  7. Net National Product (NNP)
  8. Gross National Product (GNP)
  9. Nominal GDP
  10. Real GDP
  11. GDP Deflator
  12. Consumer Price Index (CPI)
  13. Inflation
  14. Unemployment Rate

GDP

Expenditure Approach: calculate goods & services

C+Ig+G+Xn

C = personal consumption (80% of GDP)
Ig = Gross Private Domestic Investment (inventory)
G = Government spending
Xn: net exports (exports - imports)

Income Approach: calculate factors of production

R+I+P+SA+W

R = rents (rental income)
I = interest (interest income)
P = proprietor's income (proprietor: someone in business)
SA = Statistical Adjustment, added to match expenditure approach
W = wages (salaries/compensation)

Budget

transfer payments + government purchase of goods &services - government tax & fee collection (through citizens) - total amount government borrows per year

*If the answer is positive, there is a deficit | if negative, there is a surplus

Trade

exports - imports

*If the answer is positive, there is a surplus | if negative, there is a deficit

National Income
    compensation of employment + proprietary income + rental income +interest income + corporate profits
 OR
    GDP - indirect business taxes - depreciation* - net foreign factor payments
*depreciation is the same as consumption of fixed capital
Disposable Income (DPI) 

national income - personal household taxes + government transfer payments

Net Domestic Product (NDP)

GDP - depreciation

Net National Product (NNP)

GNP - depreciation

Gross National Product (GNP)

GDP + net foreign factor payments


Nominal GDP

price × quantity

Real GDP

base year price × current year quantity


GDP Deflator

(Nominal GDP ÷ Real GDP) × 100


Consumer Price Index (CPI)

(Cost of Market Basket in a Given Year ÷ Cost of Market Basket in a Base Year) × 100


Inflation

([CPI2 - CPI1] ÷ CPI1) × 100


Unemployment Rate


Unemployed ÷ (Unemployed + Employed) × 100

2 comments:

  1. Hello there, I saw that for Xn (net export) you put down export & import. I just wanted to tell you that to calculate Xn, you would need to subtract import from export (export - import). I also want to add more to your notes to help you differentiate between the different incomes. National Income (NI) is earned by American owned resources, whether it is here or abroad. While Disposable Personal Income (DPI) are after tax income, available for household consumption. And Personal Income (PI) is reserved by households regardless of the source.

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    Replies
    1. Alrighty, thank you for telling me! It's been fixed

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