AP Macroeconomics Formulas Questions
And Answers
natural rate of unemployment frictional unemployment + structural unemployment
actual unemployment rate natural unemployment + cyclical unemployment
inflation rate formula (Current year CPI ) - (Earlier Year CPI) / (Earlier Year CPI) x100
or Ne...
natural rate of unemployment frictional unemployment + structural unemployment
actual unemployment rate natural unemployment + cyclical unemployment
inflation rate formula (Current year CPI ) - (Earlier Year CPI) / (Earlier Year CPI) x100
or New CPI - old CPI/ old CPI x 100
nominal interest rate formula Real Interest Rate + Expected Inflation
real interest rate nominal interest rate - inflation rate
GDP deflator Nominal GDP/Real GDP x 100
Price Index Formula (Cost of Basket this Year/Cost of Basket in Base Year) x 100
MPC (marginal propensity to consume) change in consumption/change in income
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