Economics Formula Sheet PDF

ECONOMICS FORMULA SHEET MICROECONOMICS 1. Per unit opportunity cost = what you 19. TC = TFC +TVC give up/what you get 20. AVC =TVC/Q 2. Per unit opportunity cost = Cost/Gain 21. AFC =TFC/Q...

ECONOMICS FORMULA SHEET MICROECONOMICS 1. Per unit opportunity cost = what you 19. TC = TFC +TVC give up/what you get 20. AVC =TVC/Q 2. Per unit opportunity cost = Cost/Gain 21. AFC =TFC/Q 22. ATC = AC =TC/Q 3. ϵP = %ΔQd / %ΔP 23. ATC =AFC+AVC [(Q2−Q1)/((Q2+Q1)/2] 4. ϵP = [(P2−P1)/((P2+P1)/2] 24. MC = ΔTVC/ΔQ= ΔTC/ΔQ 5. Aπ = Tπ/Q 25. ΣMC = TVC 6. ϵS = %ΔQs/%ΔP 26. TR = P × Q [(Q2−Q1)/((Q2+Q1)/2] 7. ϵS = 27. AR =TR/Q [(P2−P1)/((P2+P1)/2] ΔP 28. MR =ΔTR/ΔQ 8. Slope = ΔRise / ΔRun = ΔQ 29. Aπ = AR-ATC =Tπ/Q 9. ϵY = %ΔQd / %ΔY 30. Tπ = TR-TC =Aπ ×Q [(Q2−Q1)/((Q2+Q1)/2] 10. ϵY = [(Y2−Y1)/((Y2+Y1)/2] 31. Mπ =ΔTπ/ΔQ 11. APL = TP/L= Q/L 32. pUM: Where MR=MC 12. ϵAB = %ΔQdA / % ΔPB 33. pSO: Where P=MC [(QA2−QA1)/((QA2+QA1)/2] 13. ϵAB = [(PB 2−PB 1)/((PB 2+PB 1)/2] 34. pFR: Where P=ATC 14. TC= Explicit cost + Implicit Cost 35. 15. Accounting π = TR – Total Explicit Cost 16. Economic Profit = TR-[Explicit Cost + Implicit Cost] 17. TP = Q 18. MPL = ΔTP/ΔL= ΔQ/ΔL 1  ECONOMICS FORMULA SHEET MACROECONOMICS 1. Gross Income = Y=YP = Rent + Wages 16. Unemployment Rate = [# of + Interest + Profit Unemployed/LF] × 100 2. YD = Y – T + Tr 17. GDP Gap = Potential GDP (YFE) - Actual GDP (Real or Nominal) 3. YD = C+S 18. GDP GAP = 2.5 × Cyclical 4. At Equilibrium: S + T-Tr +IM = Ig +X+G Unemployment Rate × Actual GDP (Real or Nominal) 5. At Equilibrium: AE = GDP =Y 19. Cyclical Unemployment Rate = 6. GDP = C+Ig +G+XN Actual Unemployment Rate -Natural Rate of Unemployment 7. XN =X – IM Cost of basket in a given Year 20. CPI = ×100 8. Ig =IN + depreciation Cost of basket in base Year CPIYr2 − CPIYr1 9. GDP = Compensation of Employees + 21. Inflation Rate = ×100 CPIYr1 Gross Operating Surplus + Gross Mixed Income + Taxes (Net of Nominal GDP 22. GDP Deflator = ×100 Real GDP Subsidies) on Production + Indirect Taxes (Net of Subsidies) Nominal Income 23. Real Income = ×100 Price Level 10. Personal Income = NNP + Government Transfer Payments – 24. Real Value (in year B $) = Nominal Value in Year A Undistributed Profit – Corporate × Price Index in Price Index in Year A Profit Tax – Other Income Items Year B GDPYr2 − GDPYr1 11. GDP Growth = ×100 25. % Change in Real Income = % GDPYr1 Change in Nominal Income – 12. RGDP Per Capita = Real Inflation Rate GDP/Population 70 26. # of Years to Double = % Growth Rate 13. (Economic) Growth Rate = ×100 RGDPPCYr2 − RGDPPCYr1 ×100 RGDPPCYr1 27. Real Interest Rate = Nominal Interest Output per period Rate-Inflation Rate 14. Labour Productivity = Units of Labour = Q/L 28. Real Wages = [Nominal Wages/PL) ×100 15. Participation Rate = [LF/Working Age Population] × 100 29. AD = C+Ig +G+XN 2  ECONOMICS FORMULA SHEET MACROECONOMICS 30. MPC =ΔC/ΔY=1-MPS-MTR 48. Excess Reserves = Actual Reserves – Target Reserves 31. MPS = ΔS/ΔY 49. Money Multiplier = Δ Deposits /Δ 32. In Closed Private Economy: MPC Reserves = 1/Target Reserves Ratio +MPS =1 50. Value of Money = 1/PL 33. MPE = Δ AE/ΔY = MPC-MPM 51. Rate of Return = [(Coupon Interest 34. MLR = Δ Total Leakages/Δ Y +/-Change in Bond Price)/Price Paid for Bond)] ×100 35. MLR = 1-MPE = MPS+MTR+MPM F−P 365 52. r = ×# Days to Maturity 36. MTR = ΔT/ΔY P 37. MPM = Δ IM/ΔY 53. MV = PQ ΔY 54. Nominal GDP = Q × P 38. Multiplier = Δ Autonomous Expenditures 55. Nominal GDP = M × V 1 1 39. Multiplier = 1−MPE = MLR 56. Terms of Trade= [Average Price of 40. NTR = T-Tr-Interest Paid on Debt Exports/Average Price of Imports] ×100 41. Budget Balance = NTR – G 57. Exchange Rate =Currency Country 42. AE = C+Ig +G+XN A/Currency Country B 43. M1 = Currency in Circulation + 58. Real Exchange Rate= [PL in Demand Deposits Canada/PL in other Country] × Nominal Exchange Rate 44. M2 = M1+ Savings (Notice) Deposits and Personal Term Deposits 45. M2+ = M2 + Deposits at Near-Banks 46. M2++ = M2+ + Canada Savings Bonds and non-money Market Mutual Funds 47. Target Reserves = Target Reserve Ratio × Demand Deposits 3