How to Calculate Key AP Economics Formulas
Clear, step-by-step walkthroughs with worked examples for the AP Micro and Macro calculations students search most. Each links to the related definition and interactive graph.
How to calculate GDPmacro
GDP = C + I + G + (X − M) where Xn = X − M (net exports)
How to calculate Real GDPmacro
Real GDP = (Nominal GDP ÷ GDP deflator) × 100
How to calculate GDP Deflatormacro
GDP deflator = (Nominal GDP ÷ Real GDP) × 100
How to calculate Inflation Ratemacro
Inflation rate = [(CPI₂ − CPI₁) ÷ CPI₁] × 100
How to calculate Unemployment Ratemacro
Unemployment rate = (Unemployed ÷ Labor force) × 100 | Labor force = Employed + Unemployed
How to calculate Price Elasticity of Demandmicro
PED = %ΔQ ÷ %ΔP, where %Δ = (new − old) ÷ ((new + old) ÷ 2). |PED| > 1 elastic, < 1 inelastic, = 1 unit elastic.
How to calculate Spending Multipliermacro
Spending multiplier = 1 ÷ (1 − MPC) = 1 ÷ MPS | ΔGDP = multiplier × Δspending | Tax multiplier = −MPC ÷ MPS