Gross Domestic Product (GDP)
𝑮𝑫𝑷 (𝒓𝒆𝒂𝒍) =
𝑵𝒐𝒎𝒊𝒏𝒂𝒍 𝑮𝑫𝑷
𝒙 𝟏𝟎𝟎
𝑮𝑫𝑷 𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓
𝑮𝑫𝑷 (𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓) =
𝑮𝑫𝑷 (𝒏𝒐𝒎𝒊𝒏𝒂𝒍) =
𝑵𝒐𝒎𝒊𝒏𝒂𝒍 𝑮𝑫𝑷
𝒙 𝟏𝟎𝟎
𝑹𝒆𝒂𝒍 𝑮𝑫𝑷
𝑹𝒆𝒂𝒍 𝑮𝑫𝑷 𝒙 𝑮𝑫𝑷 𝑫𝒆𝒇𝒍𝒂𝒕𝒐𝒓
𝟏𝟎𝟎
𝑹𝒆𝒂𝒍 𝑮𝑫𝑷 𝒑𝒆𝒓 𝒄𝒂𝒑𝒊𝒕𝒂 =
𝑮𝑫𝑷 = 𝑪 + 𝑰 + 𝑮 + 𝑿𝒏
𝑹𝒆𝒂𝒍 𝑮𝑫𝑷
𝒙 𝟏𝟎𝟎
𝑻𝒐𝒕𝒂𝒍 𝑷𝒐𝒑𝒖𝒍𝒂𝒕𝒊𝒐𝒏
(Expenditures Approach)
𝑮𝑫𝑷 = 𝑾 + 𝑹 + 𝒓 + 𝝅 + 𝑻 (Income Approach)
Real GDP Growth (Economic Growth)
𝑮𝑫𝑷𝒓 (𝒏𝒆𝒘) − 𝑮𝑫𝑷𝒓 (𝒐𝒍𝒅)
𝒙 𝟏𝟎𝟎
𝑮𝑫𝑷𝒓 (𝒐𝒍𝒅)
%𝞓 𝑮𝑫𝑷𝒓 =
%𝞓 𝑮𝑫𝑷𝒓 (𝒑𝒆𝒓 𝒄𝒂𝒑𝒊𝒕𝒂) =
𝒓𝒆𝒂𝒍 𝑮𝑫𝑷 𝒑𝒄 (𝒏𝒆𝒘) − 𝒓𝒆𝒂𝒍 𝑮𝑫𝑷 𝒑𝒄 (𝒐𝒍𝒅)
𝒙 𝟏𝟎𝟎
𝒓𝒆𝒂𝒍 𝑮𝑫𝑷 𝒑𝒄 (𝒐𝒍𝒅)
Rule of 70
𝑨𝒑𝒓𝒐𝒙# 𝒚𝒆𝒂𝒓𝒔 𝒕𝒐 𝒅𝒐𝒖𝒃𝒍𝒆 𝒓𝒆𝒂𝒍 𝑮𝑫𝑷 (𝒐𝒓 𝑮𝑫𝑷 𝒑𝒆𝒓 𝒄𝒂𝒑𝒊𝒕𝒂) =
𝟕𝟎
𝑨𝒏𝒏𝒖𝒂𝒍 % 𝒓𝒂𝒕𝒆 𝒐𝒇 𝒈𝒓𝒐𝒘𝒕𝒉
INFLATION
Formula Consumer Price Index:
𝑪𝑷𝑰 =
𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑀𝑎𝑟𝑘𝑒𝑡 𝐵𝑎𝑠𝑘𝑒𝑡 𝑖𝑛 𝒀𝒆𝒂𝒓 𝑿
𝑥 100
𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑀𝑎𝑟𝑘𝑒𝑡 𝐵𝑎𝑠𝑘𝑒𝑡 𝑖𝑛 𝑩𝒂𝒔𝒆 𝒀𝒆𝒂𝒓
Formula Inflation Rate (Change in Price Level):
%𝞓 𝑷𝑳 =
𝑪𝑷𝑰 (𝒏𝒆𝒘) − 𝑪𝑷𝑰 (𝒐𝒍𝒅)
𝒙 𝟏𝟎𝟎
𝑪𝑷𝑰 (𝒐𝒍𝒅)
UNEMPLOYMENT
Unemployment rate:
𝑼𝒓 =
# 𝒐𝒇 𝑼𝒏𝒆𝒎𝒑𝒍𝒐𝒚𝒆𝒅 𝒑𝒐𝒑𝒖𝒍𝒂𝒕𝒊𝒐𝒏
𝑥 100
# 𝒑𝒆𝒐𝒑𝒍𝒆 𝒐𝒏 𝒕𝒉𝒆 𝒍𝒂𝒃𝒐𝒖𝒓 𝒇𝒐𝒓𝒄𝒆