Latex Code for MacroEconomics Formula and Equation

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In this blog, we will summarize the latex code of most popular formulas and equations for Economics-MacroEconomics. We will cover important topics, including Investment, Aggregate Expenditure Without Government or Foreign Sectors, Marginal Propensity to Consume MPC, Marginal Propensity Save MPS, Sum of Marginal Propensity to Save and Marginal Propensity to Consume, Autonomous Spending Multiplier, Balanced Budget Multiplier, Banks Reserve Ratio, Budget Deficit, Financial Account Balance, Consumer Price Index CPI, Consumption Function, Current-Account Balance, Equality of Leakages and Injections, Equation of Exchange, Gross Domestic Product GDP, Gross Domestic Product Deflator, Inflation Between Two Years, Merchandise Trade Balance, Nominal Interest Rate, Real GDP, Real Interest Rate, Tax Multiplier, Unemployment Rate, etc.

• 1. Microeconomics
• Investment
• Aggregate Expenditure Without Government or Foreign Sectors
• Marginal Propensity to Consume MPC
• Marginal Propensity Save MPS
• Sum of Marginal Propensity to Save and Marginal Propensity to Consume
• Autonomous Spending Multiplier
• Balanced Budget Multiplier
• Banks Reserve Ratio
• Budget Deficit
• Financial Account Balance
• Consumer Price Index CPI
• Consumption Function
• Current-Account Balance
• Equality of Leakages and Injections
• Equation of Exchange
• Gross Domestic Product GDP
• Gross Domestic Product Deflator
• Inflation Between Two Years
• Merchandise Trade Balance
• Nominal Interest Rate
• Real GDP
• Real Interest Rate
• Tax Multiplier
• Unemployment Rate

• Investment

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              I=I_{P}+I_{U}
          

  Explanation

  Latex code for the Investment. Investment during a period equals the sum of planned investment (I_P) and unplanned investment(I_U).

  • : Investment
  • : Planned investment
  • : Unplanned investment
  
  

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  • Principles Economics

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• Aggregate Expenditure Without Government or Foreign Sectors

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{AE} = \text{C} + I_{P}
          

  Explanation

  Latex code for the Investment. Aggregate expenditures equal the sum of consumption C and planned investment I_{P}. The aggregate expenditures function is the relationship of aggregate expenditures to the value of real GDP.

  • : Aggregate Expenditures
  • : Consumption
  • : Planned investment
  
  

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  • Principles Economics

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• Marginal Propensity to Consume MPC

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{MPC} = \frac{\text{Change in Consumption}}{\text{Change in Income}}
          

  Explanation

  Latex code for the Marginal Propensity to Consume (MPC).

  • : Marginal Propensity to Consume
  
  

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  • Principles Economics

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• Marginal Propensity Save MPS

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{MPS} = \frac{\text{Change in Saving}}{\text{Change in Income}}
          

  Explanation

  Latex code for the Marginal Propensity Save (MPS).

  • : Marginal Propensity Save (MPS)
  
  

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  • Principles Economics

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• Sum of Marginal Propensity to Save and Marginal Propensity to Consume

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{MPC} + \text{MPS} = 1
          

  Explanation

  Latex code for the Sum of Marginal Propensity to Save and Marginal Propensity to Consume.

  • : Marginal Propensity Save (MPS)
  • : Marginal Propensity to Consume (MPC)
  
  

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  • Principles Economics

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• Autonomous Spending Multiplier

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Multiplier} = \frac{1}{1-MPC} = \frac{1}{MPS}
          

  Explanation

  Latex code for the Autonomous Spending Multiplier.

  • : Marginal Propensity to Consume
  • : Marginal Propensity Save
  
  

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  • Principles Economics

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• Balanced Budget Multiplier

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Balanced Budget Multiplier} = \frac{1}{1-MPC} +  \frac{-MPC}{1-MPC}  = 1
          

  Explanation

  Latex code for the Autonomous Spending Multiplier.

  • : Marginal Propensity to Consume
  
  

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  • Principles Economics

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• Banks Reserve Ratio

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Reserve Ratio} = \frac{\text{Bank Reserves}}{\text{Total Deposits}}
          

  Explanation

  Latex code for the Banks Reserve Ratio.

  
  

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  • Principles Economics

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• Budget Deficit

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Budget Deficit} = \text{Federal Government Spending} - \text{Tax Collections}
          

  Explanation

  Latex code for the Budget Deficit.

  
  

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  • Principles Economics

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• Financial Account Balance

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Financial Account Balance} = \text{Foreign Purchases of Home Assets} - \text{Home Purchases of Foreign Assets}
          

  Explanation

  Latex code for the Financial Account Balance.

  
  

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  • Principles Economics

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• Consumer Price Index CPI

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{CPI} = \frac{\text{Base Year Quantities} \times \text{Current Year Prices}}{\text{Base Year Quantities} \times \text{Base Year Prices}} \times 100
          

  Explanation

  Latex code for Consumer Price Index CPI.

  
  

  Related Documents

  • CPI Home : U.S. Bureau of Labor Statistics
  • Investopedia: Consumer Price Index

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• Consumption Function

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              C = C_{a} + \text{MPC}(Y)               
          

  Explanation

  Latex code for Consumption Function.

  
  

  Related Documents

  • CPI Home : U.S. Bureau of Labor Statistics
  • Investopedia: Consumer Price Index

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• Current-Account Balance

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Current-Account Balance} + \text{Trade Balance} + \text{Services Balance} + \text{Unilateral}           
          

  Explanation

  Latex code for Current-Account Balance.

  
  

  Related Documents

  • CPI Home : U.S. Bureau of Labor Statistics
  • Investopedia: Consumer Price Index

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• Equality of Leakages and Injections

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{S} + \text{T} + \text{M} = \text{I} + \text{G} + \text{X}  
          

  Explanation

  Latex code for Equality of Leakages and Injections. Injection and leakages in economics, Some transactions put money into the economy â?? that is, the money is being utilised elsewhere in the economy. These are injections. Some transactions take money out of the economy. That is, the money is not being utilised elsewhere in the economy. These are leakages.

  • : Investment
  • : Government Spending
  • : Exports
  
  

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  • Why are leakages equal to injections?

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• Equation of Exchange

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{MV} = \text{PQ}
          

  Explanation

  Latex code for Equation of Exchange. The equation of exchange says simply that total spending on goods and services, measured as MV, equals total spending on goods and services, measured as PY (or nominal GDP). The equation of exchange is thus an identity, a mathematical expression that is true by definition.

  • : Total spending on goods and services, measured as Monetary Value
  • : Total spending on goods and services, measured as PY (or nominal GDP)
  
  

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  • Investopedia: equation of exchange
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• Gross Domestic Product GDP

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{GDP}= \text{C} + \text{G} + \text{I} + \text{NX}=\text{C}+\text{I}+\text{G}+(\text{X}-\text{M}) \\
              \text{GDP} = \text{Total National Income} + \text{Sales Taxes} + \text{Depreciation} + \text{Net Foreign Factor Income}
          

  Explanation

  Latex code for Gross Domestic Product. There are two primary methods or formulas by which GDP can be determined: 1. Expenditure Approach, The expenditure approach is the most commonly used GDP formula, which is based on the money spent by various groups that participate in the economy. GDP = C + G + I + NX. 2. Income Approach, This GDP formula takes the total income generated by the goods and services produced. GDP = Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income

  • : Gross Domestic Product
  • : consumption or all private consumer spending within a countryâ??s economy, including, durable goods (items with a lifespan greater than three years), non-durable goods (food & clothing), and services.
  • : total government expenditures, including salaries of government employees, road construction/repair, public schools, and military expenditure.
  • : net exports or a country's total exports less total imports
  
  

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  • Corporate Finance Institute GDP Formula

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• Gross Domestic Product Deflator

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{GDP Deflator}= \frac{\text{Current Year Quantities} \times \text{Current Year Prices}}{\text{Current Year Quantities} \times \text{Base Year Prices}} \times 100
          

  Explanation

  Latex code for Gross Domestic Product Deflator.

  
  

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  • Corporate Finance Institute GDP Formula

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• Inflation Between Two Years

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Inflation Between Years Y and Z}= [\frac{\text{CPI in Year Z}}{\text{CPI in Year Y}} - 1] \times 100
          

  Explanation

  Latex code for Inflation Between Two Years Y and Z.

  
  

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  • Corporate Finance Institute GDP Formula

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• Merchandise Trade Balance

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Merchandise Trade Balance}=\text{Value of Merchandise Exports} - \text{Value of Merchandise Imports}
          

  Explanation

  Latex code for Merchandise Trade Balance.

  
  

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  • Merchandise imports

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• Nominal Interest Rate

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Nominal Interest Rate}=\text{Real Interest Rate} + \text{Anticipated Inflation}
          

  Explanation

  Latex code for Nominal Interest Rate.

  
  

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  • Merchandise imports

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• Real GDP

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Real GDP}=\frac{Nominal GDP}{CPI for the same year as the nominal figure} \times 100
          

  Explanation

  Latex code for Real GDP.

  
  

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  • Merchandise imports

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• Real Interest Rate

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Real Interest Rate} = \text{Nominal Interest Rate} â?? \text{Anticipated Inflation}
          

  Explanation

  Latex code for Real Interest Rate.

  
  

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  • Merchandise imports

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• Tax Multiplier

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Tax Multiplier} = -\frac{MPC}{MPS}
          

  Explanation

  Latex code for Tax Multiplier.

  
  

  Related Documents

  • Merchandise imports

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• Unemployment Rate

  Economics,MacroEconomics

  Equation

  
  
  

  Latex Code

              \text{Unemployment Rate} = \frac{\text{Unemployed}}{\text{Labor Force}}
          

  Explanation

  Latex code for Unemployment Rate.

  
  

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  • Merchandise imports

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