Macro Midterm Review. What are the formulas for the spending multiplier 1/MPS 1/1-MPC.

Slides:



Advertisements
Similar presentations
AP Macro Review Fun with formulas!.
Advertisements

Begin $100 $200 $300 $400 $500 GraphsEconomicEquations Unit 1 Unit 3 KeyTerms Unit 2.
AP Macro Review Unit 4 Financial Sector.
World GDP. Nominal Gross Domestic Product Real Gross Domestic Product, Chained 2005 Dollars.
Interest Rates & Inflation
1 of 37 chapter: 7 >> Krugman/Wells ©2009  Worth Publishers Tracking the Macroeconomy.
GDP = C + I + G + NX MV = P Q (= $GDP)
Inflation questions: 1 Suppose a typical consumer buys the following quantities of three commodities in 2006 and per per Commodity Quantity Unit.
Measuring the Cost of Living Chapter 24 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the.
Appendix to Chapter 1 Defining Aggregate Output, Income, the Price Level, and the Inflation Rate.
Tuesday, February 7 1. Turn in Homework 2. Essential Terms  Inflation  Hyperinflation  Consumer Price Index (CPI)  Fixed income  Market basket  Wage-price.
GDP = C + I + G + NX MV = P Q (= $GDP)
GDP: Spending Y = C + I + G + NX
Chapter 1 Why Study Money, Banking, and Financial Markets?
Measuring the Cost of Living
GDP = C + I + G + NX MV = P Q (= $GDP)
Study Tips for Final Approximately 1/3 of questions from Ch Ch. 18 & supplemental readings will account for approximately 1/5 of questions. Complete.
GDP, CPI, Unemployment Review Chaps. 23, 24 and 28.
Measuring Macroeconomics. Aggregate Output National income accounts An accounting system used to measure aggregate economic activity. The typical measure.
Nominal GDP Vs Real GDP Part II of Unit 3—measuring domestic output.
NOMINAL GDP v. REAL GDP. DEFINITIONS  Nominal GDP is the market value of all final goods and services produced in a given year. It is calculated as (Price.
10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt Inflation UnemploymentInflationUnemployment.
What is the law of increasing costs?
 What is inflation? --a general upward movement in price of goods and services in an economy  What is deflation? --a general downward movement in.
Lecture 2 The Data of Macroeconomics, Macroeconomic Accounts 1 1.Measuring the Value of Economic Activity: GDP 2.Measuring the Cost of Living: The CPI.
Measuring the Cost of Living Chapter 11 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of.
Demand for Money and the Money Market. The Opportunity Cost of Holding Money People weigh decisions about how much money to have on hand Opportunity cost.
Begin $100 $200 $300 $400 $500 C1-$100 - $100 - $100 What is the MPS? MPS is the marginal propensity to save when disposable income has been increased.
COMMON MISTAKES ON THE AP MACRO EXAM Compiled by: John Ostick Malvern Prep Malvern, PA
Mr. Weiss Vocabulary Review – Test 4 – Sections 3 & 4 1. aggregate demand curve; 2. contractionary fiscal policy; 3. cyclical unemployment; 4. disposable.
Chapter 11 Inflation and Unemployment Inflation  Is the general increase in the prices of goods and services in an entire economy.  For ex: an annual.
CHAPTER 24 Tracking the Macroeconomy. 2 The National Accounts  Almost all countries calculate a set of numbers known as the national income and product.
Begin $100 $200 $300 $400 $500 Which way Does a Supply Curve Shift? Graphs Unemployment GDP Random Which way Does a demand Curve shift?
MPC = Change in Consumption Change in Income Marginal Propensity to Consume = MPC MPC = 750 / 1000 = 0.75 “Disposable income” Real terms MPC does not equal.
GDP Deflator vs. CPI Index Two price indices to measure Inflation.
Begin Nicksey Cruz Period 2 $100 $200 $300 $400 $500.
Chapter 5 Macroeconomics the Big Picture Hossain: MSMC.
Prices and Inflation Price Indexes and Inflation GDP Deflator Inflation and Interest Rates Misconceptions about Inflation Costs of Inflation.
Eco 200 – Principles of Macroeconomics Chapter 14: Monetary Policy.
Economic Indicators. Gross Domestic Product GDP per Capita.
Chapter 13, Section 2 Price Indexes. Constructing a Price Index Used to measure changes in P. over time Created by selecting a base year and a representative.
Unit-2 Macro Review GDP, Unemployment, Inflation.
Graphs and Formulas.  Determinants (Shifters) of PPC permanent change in land, labor, capital, entrepreneurial ability.
MACRO FINAL REVIEW. Qty of Cars 2, , ,000 3,000 1,000 Qty of Computers A G All about PPF Curves.
Begin $100 $200 $300 $400 $500 C1-$100 - $100 What are the factors of production? land, labor, capital, & entrepreneurship.
Macroeconomics CHAPTER 7 Tracking the Macroeconomy PowerPoint® Slides by Can Erbil © 2005 Worth Publishers, all rights reserved.
National Income and Price Determination: Aggregate Supply and Aggregate Demand By: Darshana Balasubramaniam, Kristina Bogardy, Spencer Cappelli, Ryan Lawler.
If MPS = 0.4, the government spending multiplier is Assessment (a) 0.25 (b) 2.5 (c) 25.
Unit-3 Macro Review Consumption, Saving & AD/AS Model.
Do Now List the 3 major goals of economic policymakers. What measures can we use to quantify the performance of the economy in these three areas?
THE MULTIPLIER UNDERSTAND THE MULTIPLIER EFFECT BY ANALYZING A REAL WORLD EXAMPLE DEMONSTRATE UNDERSTANDING OF HOW THE MPC AND MPS ARE USED TO CALCULATE.
AP Macroeconomics The Money Market. The market where the Fed and the users of money interact thus determining the short- term nominal interest rate (i%).
Begin Graphs Threats to Economy GDP Laws & Policies Formulas Key Terms.
THE MONETARY EQUATION OF EXCHANGE AP Macroeconomics.
Price Indices and Deflators Correction factors from nominal to real Math Notes & Ch 7 & 8.
The Measurement and Calculation of Inflation Market Baskets and Price Indices.
Going Big!!!!! Micro Price Quantity Costs Revenues Profits Macro GDP Unemployment Inflation Interest Rates Money Supply.
Price Index Calculation See the practice (with answers) on- line as well as Mod 15 in Krugman.
MACRO: Unit 3 Review – Double Bb
Why Study Financial Markets?
Section 3 Module 15.
AP Macro Exam Review.
How does GDP measure the state of the economy?
Going Big!!!!! Micro Macro Price Quantity Costs Revenues Profits Firms
Unit Two: Other Indexes.
Inflation Rising prices.
Inflation Part II….
FIGURE 11.1 GDP and the Circular Flow
Economics Macro Review
GDP Related Formulas: = C + IG + G + Xn.
Presentation transcript:

Macro Midterm Review

What are the formulas for the spending multiplier 1/MPS 1/1-MPC

What is the equation for MPC MPC = Change in consumption/change in income

What is the formula for MPS MPS = Change in savings/change in income

What is the formula for the GDP Deflator? GDP Deflator = current year prices x quantity of current year basket/base year prices x quantity of current year basket

What are the formulas for Nominal and Real GDP? Nominal = quantity of goods/services x price Real = Nominal GDP/ Price index

What is the formula for the tax multiplier? Tax Multiplier = -MPC/MPS

What is the formula for the money multiplier? MM = 1/reserve ratio

What is the formula to compute the maximum money a bank can loan out and the entire banking system? Individual Bank = ER Banking system = ER x money multiplier

What is the formula for the unemployment rate? Unemployment rate = # unemployed/ Labor Force

What is the formula for the CPI? CPI = Base year quantities x current year prices/ base year quantities x base year prices

What are the determinants of GDP? C + I + G + Xn

What is the formula for the equation of exchange? MV = PQ

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.