Samenvatting Principles Of Economics (5181V8EC): Formulas Principles of Economics: Chapters 10 and 12

Formulas principles of economics chapter 10 and 12
Chapter 10

GDP = C + I + G + X – IM

GDP = C + I + G
Total income = total spending

GDP = C + G + S
Total income = consumption spending + savings

GDP = C + G + I
Total income = consumption spending + investment spending

C+G+S=C+G+I
Consumption spending |+ savings = consumption spending + investment spending

S=I
savings = investment spending

Sgovernemnt = T – G – TR
T = tax revenues
TR = government transfers

Snational = Sgovernment + Sprivate

Snational = I
national savings = investment spending

NCI = IM – X
net capital inflow = imports – exports

I = (GDP – C – G) + (IM – X)

I = Snational + (IM – X) = Snational + NCI
investment spending = national savings + net capital flow

Real interest rate = nominal interest rate – inflation rate

Chapter 12
Profit per unit of output = price per unit of output – production cost per unit of output

Output gap = ((actual aggregate output – potential output) / potential output) x 100