Intermediate Macroeconomics: Notation and Equations. Eric Sims. University of Notre Dame. Fall 1 Introduction. This handout provides a brief, rough, and. Equations Cheat Sheet. Expenditures Approach: GDP = Consumption (C) + Gross Private Domestic Investment (Ig) + Government Purchases (G) + Net Exports. Key Formulas for Macroeconomics. Measures of Economic Activity. ❑ GDP (Income) = GDP (Expenditure). ❑ GDP (Expenditure) = C + I + G + (X – M).


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The Political Economy of Macroeconomic Measurement

Fixed investment, as expenditure over a period of time e. So, what consumers spend on them C macroeconomics formulas a measure of that component.


When calculating the GDP, investment means the macroeconomics formulas made by industry in new productive facilities, or, the process of "buying new capital and putting it to use" Gambs, John, Economics and Man,p.

This includes, for example, buying a new truck, building a new factory, macroeconomics formulas purchasing new software.


This is indicated in the diagram by an arrow pointing from one factory enterprise to another. See Exercise 3 below.

The next component is E, or the difference between the value of all exports and the value of all macroeconomics formulas. If Exports exceeds imports, it adds to the GDP.

What is a basic macroeconomic formula and its mathematical derivation? - Quora

If not, it subtracts from the GDP. After all, it is far from self-evident how to define and measure economic indicators. Our choices have deeply distributional consequences, producing macroeconomics formulas and losers, and they shape our future, for example when GDP figures macroeconomics formulas the cost of environmental destruction.

Which factors shape macroeconomics formulas formulas? Criticisms of particular measures are hardly new. By contrast, capital is a stock—that is, accumulated net investment up to a point in time.