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Formulas
1. GDP (Expenditure Method)
GDP
3
C+1+6+x-M
C - Consumption
I
Investment
G = Government Spending
X = Exports
M = Imports
2. Per Capita Income
Per Capita Income - National Income
Population
3. Inflation Rate
Inflation Rate = New CPJ-Old CPI
x100
Old CPI
4. Price Elasticity of Demand (PED)
PED = % Change in Quantity Demanded
1. Change in Price

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5. Income Elasticity of Demaned (YED)
Yed
9
1. Change in Demand
7. Change in Income
6. Gross Elasticity of Demand
(XED)
XED =
1. Change in Quantity Demanded.
of Good A
% Change in Price of Good B
7. Average Cost (AC)
Ac
=
TC
Q
TC
3
Total
Q
S
8. Marginal Cost
Quantity
MC
Mc
.
AJC
AQ