Macroeconomics - Formulas
GDP - Production in the Economy
National spending approach:
Y = C + I + G + NX
National income approach:
Y = Wages + Rent + Interest + Profit
Production Approach (summing up value-added)
Measuring changes over time:
GDP Deflator:
Nominal GDP = Real GDP x GDP deflator
Real GDP= Nominal GDP/GDP deflator
Chain weighting:
How to compare GDP per capita:
Market exchange rate
Measuring growth
The Rule of 70
Cobb-Douglas production function