BEC Formulas question n answers graded A+ 2023/2024

BEC FormulasReal GDP - correct answer Nominal GDP/GDP Deflator x 100 Multiplier effect - correct answer 1/(1-MPC) The expenditure approach - correct answer Government Purchases Gross Domestic Investment Personal Consumption Net Exports The income approach - correct answer Income of proprietors Profits of corporations Interest (net) Rental Income Adjustments for Net Foreign Income and miscellaneous items Taxes Employee Compensation Depreciation Net National Product - correct answer GNP- Depreciation National Income - correct answer NNP - indirect business taxes Disposable income - correct answer Personal income- personal taxes Unemployment rate - correct answer number of unemployed/labor force x 100 Frictional Unemployment - correct answer unemployment that occurs when people take time to find a job Structural Unemployment - correct answer Jobs do no match skills seasonal unemployment - correct answer unemployment linked to seasonal work Cyclical Unemployment - correct answer Results from a decline in real GDP during contraction or recession Natural rate of unemployment - correct answer frictional unemployment + structural unemployment + seasonal Phillips Curve - correct answer demonstrates the inverse relationship between the rate of inflation and unemployment Consumer Price Index - correct answer Current cost of Market Basket/ Base year cost of market basket x100 Inflation rate - correct answer CPI this year - CPI last year / CPI last year x 100 Demand Pull inflation - correct answer increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand cost-push inflation - correct answer a sustained rise in the price level caused by a leftward shift of the aggregate supply curve M1 - correct answer includes coins, currency, checkable deposits and traveler's checks M2 - correct answer includes M1 plus CDs less than 100,000, money market deposits at banks, mutual fund accounts, and savings accounts