Macroeconomics Formulas Flashcards

Questions and Answers

What is the Unemployment Rate Formula?

# of employed + # of unemployed

# of unemployed / labor force x 100 (correct)

# of employed / working-age population x 100

unemployment rate - natural unemployment rate

What is the Employment-Population Ratio Formula?

# of employed + # of unemployed

# of employed / working-age population x 100 (correct)

# of unemployed / labor force x 100

# of employed / labor force x 100

What is the Labor Force Formula?

# of employed / working-age population x 100

Exports - Imports

# of employed + # of unemployed (correct)

# of unemployed / labor force x 100

What is the formula for Natural Rate of Unemployment?

Frctional + structural Signup and view all the answers

What is frictional unemployment?

Short time job search Signup and view all the answers

What is structural unemployment?

Persistent mismatch (re-training) Signup and view all the answers

What is the Cyclical Unemployment Formula?

unemployment rate - natural unemployment rate Signup and view all the answers

What is the Labor Force Participation Rate?

Labor Force / working-age population x 100 Signup and view all the answers

What is the GDP Deflator formula?

(Nominal GDP / Real GDP)*100 Signup and view all the answers

What is Nominal GDP?

The price of the calculated year * Quantities of the calculated year Signup and view all the answers

What is Real GDP?

Price of the base years * Quantities of the calculated year Signup and view all the answers

What are Net Exports?

Exports - Imports Signup and view all the answers

What is the formula for short-run economic growth?

(The year being calculated Real GDP - The previous year Real GDP) / (previous year Real GDP)* 100 Signup and view all the answers

What is the Inflation Rate formula?

(Deflator of calculated year - deflator of previous year) / (deflator of previous year) * 100 Signup and view all the answers

What is the formula for Real GDP per capita?

(Real GDP / Total population) * 100 Signup and view all the answers

What is the formula for rGDPpc growth rate?

(growth rate of real GDP - population growth rate) * 100 Signup and view all the answers

What is the Long-run economic growth rate formula?

(Short-run economic growth rate) - (The population growth rate) Signup and view all the answers

What is the Population Growth Rate Formula?

(Population of calculated year - Population of previous year) / Population of previous year * 100 Signup and view all the answers

Study Notes

Unemployment Metrics

Unemployment Rate Formula: Calculated as the number of unemployed divided by the labor force, multiplied by 100.
Employment-Population Ratio Formula: Defined as the number of employed individuals divided by the working-age population, multiplied by 100.
Labor Force Formula: The sum of employed and unemployed individuals within the economy.
Natural Rate of Unemployment Formula: Composed of frictional and structural unemployment rates.
Cyclical Unemployment Formula: Determined by subtracting the natural unemployment rate from the actual unemployment rate (CU = U - U*).

Types of Unemployment

Frictional Unemployment: Refers to short-term job searches typically occurring during transitions between jobs.
Structural Unemployment: Arises from persistent mismatches between the skills of the workforce and the requirements of available jobs, often requiring retraining.

Economic Indicators

Labor Force Participation Rate: Represents the labor force as a percentage of the working-age population, indicating the overall engagement of people in the labor market.
GDP Deflator: A measure of price inflation, calculated as nominal GDP divided by real GDP, multiplied by 100.
Nominal GDP: The economic output measured using current prices in the year of calculation.
Real GDP: The economic output measured using the prices from a base year, allowing for inflation adjustment.

Trade and Growth Formulas

Net Exports: Calculated as exports minus imports, influencing the balance of trade.
Short-Run Economic Growth Formula: The change in real GDP from one year to the next, expressed as a percentage of the previous year's real GDP.
Inflation Rate: Calculated using either the deflator or the Consumer Price Index (CPI) from the current and previous years, reflecting the rate of price increase in the economy.
Real GDP per Capita: Represents the real GDP divided by the total population, adjusted for population size.
Real GDP per Capita Growth Rate: Evaluates individual economic growth by subtracting the population growth rate from the real GDP growth rate.

Long-Run Growth Analysis

Long-Run Economic Growth Rate: The short-run economic growth rate adjusted for population growth rate influences long-term economic projections.
Population Growth Rate Formula: Measures changes in population from one year to another, expressed as a percentage of the previous year's population.

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Description

Test your knowledge on key macroeconomic formulas with these flashcards. Each card presents a formula along with its definition, helping you understand concepts such as the unemployment rate and labor force. Perfect for students preparing for exams in economics.