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AP Macro Equations

Unit Two

TermDefinition
Percentage change in Real GDP percentage change in nominal GDP - rate of inflation = ____________
Nominal Interest Rates expected inflation + rate of return = ________
Real Interest Rates nominal interest rates - actual interest rates = _________
CPI (price x quantity for next year) divided by (price x quantity for base year) then times 100 = _________
GDP Deflator (same year nominal GDP) divided by (same year real GDP) = _________
Real GDP Growth nominal GDP growth - rate of inflation = __________
Real Wage Growth nominal wage growth - rate of inflation = ___________
Per Capita Real GDP real GDP divided by population = ____________
Unemployment Rate number unemployed divided by civilian labor force = __________
Labor Force Participation Rate (number actively participating in CLF) divided by (number eligible for CLF) = ________
Full Employment/Natural Rate of Unemployment structural unemployment + frictional unemployment = _________
Created by: rcooke
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