ECO1102 formula sheet PDF

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Download ECO1102 formula sheet PDF

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Inflation rate = nominal GDP per capita growth - real GDP per capita growth Nominal GDP per capita growth = Nominal GDP growth - population growth Nominal GDP growth - population growth - inflation growth = Real GDP per capita growth Real interest rate = nominal interest rate - inflation rate Unemployment rate = (number of unemployed ÷ number of labour force) * 100 Circular flow model shows we should get the same GDP: National income = national expenditure = national production EXPENDITURE APPROACH: Expenditure/GDP = C + I + G + NX = PRODUCTION C = CONSUMPTION I = INVESTMENT G = GOVERNMENT PURCHASES NX / (Exports - Imports) = NET EXPORTS INCOME APPROACH: Income = wages + interest + rental income + profits *VALUE ADDED APPROACH: GDP = VOGS - IC VOGS = Value of goods and services IC = intermediate consumption Nominal GDP formula = quantity of each good produced in a given year * price in that year Real GDP: - Must choose a base year - In base year, Nominal GDP = real GDP - Every other year, we multiply the quantity of a good produced in that year by the price in the base year (Holding prices constant)

GDP per capita = GDP ÷ population size - Per capita means per person

Labour force = employed + unemployed

Rule of 70:

Growth accounting:...