22 Macroeconomics formulas you need to know for the Exam
Updated 4/13/2021 Jacob Reed
Below you will find all the formulas you need to know for Macro Economics. Unfortunately for some, the Macro exam is a little more math heavy than the Micro exam. But fear not, the list below is all you need. If you need some explanations, checkout the video too!
![Calculator](https://www.reviewecon.com/wp-content/uploads/2018/04/calculator-168360_640.jpg)
GDP Formulas
Output Expenditure Model
GDP=C+Ig+G+(X-M)= Consumption + Gross Investment + Government Spending+ (Exports – Imports)
Income Approach
GDP = Compensation of Employees + Rents + Interest + Proprietors Income + Corporate Profits + Taxes on Imports + Statistical Discrepancy – Consumption of Fixed Capital
Inflation Formulas
Inflation = Nominal % change – Real % change
Real % Change = Nominal % change – Inflation
CPI = New Market Basket Value/Base Market Basket Value x 100
Deflator = Nominal Value/Real Value x 100
Inflation rate = (New Index – Old Index) / Old Index x 100
Real value = Nominal Value/Index x 100
Banking Formulas
Money Multiplier = 1 / Reserve Requirement
Quantity of Money Theory: Nominal GDP=M x V = P x Y
Time Value of Money
Future Value = Present Value + (Present Value x Interest Rate)
Present Value ≈ Future Value – (Future Value x Interest Rate)