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Macroeconomics Ultimate Cheat Sheet questions and answers graded A+ 2024/2025
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Macroeconomics Ultimate Cheat Sheet questions and answers graded A+ 2024/2025
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MacroeconomicsUltimate
Cheat
Sheet
FORMULAS
-
ANSFORMULAS
Labor
Participation
Rate
-
ANS(Unemployed
+
Employed)/Population
Unemployment
Rate
-
ANSunemployed/labor
force
Spending
Multiplier
-
ANS1/MPS
Tax
Multiplier
-
ANS-MPC/MPS
Money
Multiplier
-
ANS1/reserve
requirement
Real
Interest
Rate
-
ANSnominal
interest
rate
-
inflation
rate
KEY
RELATIONSHIPS
-
ANSKEY
RELATIONSHIPS
Demand
Increases
-
ANSEquilibrium
price
increases
Supply
increases
-
ANSEquilibrium
price
decreases
Consumer
spending
increases
-
ANSReal
GDP
increases
Interest
rates
increase
-
ANSinvestment
decreases
Inflation
increases
-
ANSreal
wages
decrease
Aggregate
demand
increases
-
ANSprice
level
increases
SR
aggregate
supply
increases
-
ANSPrice
level
decreases
Government
spending
increases
-
ANSReal
GDP
increases
Taxes
increase
-
ANSDisposable
income
decreases
MPC
increases
-
ANSSpending
multiplier
increases
Interest
rates
increase
-
ANSbond
prices
decrease
Money
supply
increases
-
ANSNominal
interest
rates
decrease
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