← Unit 3 · Macroeconomics
Economics · Cheatsheet

Unit 3 · Macroeconomics

Chapter 1 · Measuring & modelling

📋 Reference · always available
GDP (expenditure)
GDP=C+I+G+(X−M)\text{GDP} = C + I + G + (X - M)
Real vs nominal
Real GDP adjusts for inflation; nominal uses current prices.
Real GDP
Real GDP=Nominal GDPdeflator×100\text{Real GDP} = \frac{\text{Nominal GDP}}{\text{deflator}} \times 100
AD–AS
AD = C+I+G+(X−M)C+I+G+(X-M); LRAS vertical at potential output.
GDP limitations
Ignores inequality, environment, unpaid/informal work, well-being.