ECON1102 EXAM FORMULA SHEET

Description

Topics covered: GDP measurement — three approaches, value added, GNI vs GDP Prices and inflation — CPI, GDP deflator, inflation rate, CPI biases Labour market — competitive model, MPL = W/P, tax wedge, frictional flows, Okun's law Saving, investment and interest rates — Fisher equation, capital accumulation, user cost of capital, loanable funds market Money and banking — money demand, quantity theory, deposit expansion multiplier, bond pricing Central banks and monetary policy — RBA cash rate corridor, PRF, expectations hypothesis Income-expenditure model — PAE, equilibrium, consumption function, multiplier, shift vs rotation Fiscal policy — G and tax multipliers, BBM, closing output gaps, budget balance, debt dynamics, automatic stabilisers AD-AS model — AD derived from IE model + PRF, horizontal AS, self-correction, demand vs supply shocks, accommodation Exchange rates — nominal, real, PPP, cross rates, fixed vs flexible regimes, monetary transmission chain Open economy — balance of payments, current account, capital/financial account, small open economy model Economic growth — Cobb-Douglas production function, growth accounting, Solow residual, living standards