Cheat Sheet for AP Economics
GDP gap = Cyclical unemployment x 2. Rate of Inflation: ((This yr’s price index – Last yr’s price index) / Last yr’s price index) X 100. Rule of 70 = 70 / Rate of Inflation % change in real income = % change in nominal income - % change in price level % change in price level = % change in nominal income - % change in real income. Chapter 8: ................
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