Economic Measurement: GDP Calculation, Inflation Adjustments, and Labor Market Statistics

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Economics - Macroeconomics

charlotte1oxhi Created by 10 mon ago

Cards in this deck(27)

The formula C + I + G + (X - n) is used to calculate _____, which represents the total economic output of a country.

To calculate Real GDP, use the formula (Nominal GDP/Price Index) x 100. This helps in adjusting for _____ in the economy.

Real GDP per capita is calculated by dividing real GDP by _____. This measure helps in understanding the average economic output per person.

Economic growth can be measured by the formula (New GDP - Old GDP) / Old GDP x 100. This indicates the percentage change in _____ over time.

The labor force is the sum of _____ and unemployed individuals within an economy.

The unemployment rate is calculated using the formula (unemployed/labor force) x 100. It represents the percentage of the labor force that is _____ without work.

The labor force participation rate is determined by the formula (labor force/adult population) x 100. It shows the percentage of the adult population that is _____ in the labor market.

The price index is calculated by (current year cost / base year cost) x 100. This index helps in measuring changes in _____ over time.

The rate of inflation is determined by the formula (new price index - old price index) / old price index x 100. It indicates the rate at which _____ are rising.

The Average Propensity to Consume (APC) is calculated as consumption divided by _____. It shows the proportion of income spent on consumption.

The Average Propensity to Save (APS) is determined by dividing saving by _____. It indicates the portion of income that is saved rather than spent.

The Marginal Propensity to Consume (MPC) is calculated as the change in consumption divided by the change in _____. It reflects the increase in consumption from an additional unit of income.

The Marginal Propensity to Save (MPS) is determined by the change in savings divided by the change in _____. It shows the increase in savings from an additional unit of income.

The Consumption/Simple Spending Multiplier is calculated as 1/MPS. This multiplier effect shows how initial spending leads to a larger change in _____.

The Investment/Simple Spending Multiplier is calculated as 1/MPS. It demonstrates how initial investment spending can lead to a larger change in _____.

The Government/Simple Spending Multiplier is calculated as 1/MPS. This multiplier effect shows how government spending can lead to a larger change in _____.

The New Export/Simple Spending Multiplier is calculated as 1/MPS. It illustrates how changes in net exports can lead to a larger change in _____.

The Tax Multiplier is calculated using the formula -MPC/MPS. It shows the impact of a change in taxes on the overall _____ in the economy.

Required reserves are calculated as Deposit x Required Reserve Ratio. This represents the portion of deposits that banks must hold as _____.

Excess reserves are determined by subtracting required reserves from the total deposit. This amount can be used by banks for _____.

The money multiplier is calculated as 1/reserve ratio. It indicates the maximum amount of _____ that can be created by banks from an initial deposit.

The first loan or initial loan is derived from the first excess reserve. This represents the initial amount that can be _____ by banks.

Total loans or change in money supply is calculated as First excess reserve x money multiplier. This shows the potential increase in _____ from an initial reserve.

The total change in demand deposits is calculated as Initial deposit x money multiplier. This reflects the total increase in _____ within the banking system.

The total change in money supply is calculated as Bond value x money multiplier. This indicates the potential increase in _____ from bond transactions.

To increase the money supply, the central bank may choose to _____ bonds in the open market.

To decrease the money supply, the central bank may choose to _____ bonds in the open market.

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