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ECON 2000 (15)
Final

# formulas for final.pdf

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School
York University
Department
Economics
Course
ECON 2000
Professor
Mokhles Hossain
Semester
Fall

Description
Nominal  Gdp  =  P  x  Q   Real  GDP  =  Pbase  x  Q   GDP  Deflator  =  Nominal  GDP  /  Real  GDP   GDP  =  Y  =  C  +  I  +  G  +  NX   Gross  National  Income  =  GDP   –  Net  Income  of  foreigners   Net  National  Income  =  Gross  Naational  Income  =  Depreciation   Personal  Income  =  NI  –  Corporate    profits  –  social  insurance  –  net  interest  +  dividends  +  govt  transfers  to   individuals  +  personal  interest  income   Personal  dispoaible  income  =  personal  income   –  personal  tax  payents   Real  wage  =  w  /  p   Cpi  =  Q  x  P  /Quantity  x  Pbase   GDI  =  Net  Domestic  Income  @  Fa ctor  Cost  +  Depreciaton  +  Indirect  Tax   –  Subsidy   Labor  Force  =  #  of  employed  +  #  of  unemployed   Unemployment  rate  =  #  of  unemployed  /  Labor  Force  x  100   Labor  force  participation  rate  =  labor  force  /  adult  population  x  100                         Jessica  Gahtan   Formulas  for  Final   1   Production function Y = F(K, L) Constant returns to scale = zY = F(zK, zL) Profit: Revenue - costs (Labor/capital costs) = PY – WL - RK Labor Cost: Wage x Labor (W x L) Profit = PF(K, L) – WL – RL MPL = F (K, L + 1) – F (K, L) - Extra revenue: P x MPL ∆ Profit = ∆ Revenue - ∆ Cost = (P x MPL) – W mpl = w / p MPK = F (K + 1, L) – F (K, L) ∆ Profit = ∆ Revenue - ∆ Cost = (P x MPK) - R MPK = R/P Real Economic Profit: Y – (MPL x L) – (MPK x K) Distribution of NI: Y = (MPL x L) + (MPK x K) + EP Euler’s theorem: F(K, L) = (MPK x K) + (MPL x L) The Cobb-Douglas Production Function Capital Income = MPK x K = ∞Y Labor Income = MPL x L = (1-∞) Y Y = F(K,L) = A K∞L(1-∞) Marginal product of labor: MPL = (1-∞) AK∞L-∞ marginal product of capital: MPK = ∞AK∞-1L1-∞ MPL = (1-∞) Y/L MP = ∞Y/K National accounts identity: Y = C + I + G C = C(Y-T) I= I(r) Y = C(Y-T) + I(r) + G National Saving = Private Saving + Public Saving J
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