GDP=C+I+G+(X−M)GDP equals cap C plus cap I plus cap G plus open paren cap X minus cap M close paren Where: = Consumption, = Investment, = Government Spending, = Exports, = Imports.
In a free market, welfare is maximized at equilibrium. Paper 3 frequently asks you to calculate these areas using the geometric formula for a triangle:
Hey guys, I just finished a "Repack" of the Econ HL Formula Booklet. It’s way shorter and easier to navigate than the standard one. 📊
[ Y = C + I + G + (X - M) ] Where ( C ) = Consumption, ( I ) = Investment, ( G ) = Government Spending, ( X ) = Exports, ( M ) = Imports. ib economics hl formula booklet repack
[ \textHDI = \sqrt[3] \textLife Expectancy Index \times \textEducation Index \times \textIncome Index ]
Calculating opportunity costs (e.g., Opportunity cost of X = Units of Y / Units of X). 4. HL Extension: Development & Multipliers Multiplier: (Marginal Propensity to Withdraw)
Financial Account=Direct Investment+Portfolio Investment+Reserve AssetsFinancial Account equals Direct Investment plus Portfolio Investment plus Reserve Assets GDP=C+I+G+(X−M)GDP equals cap C plus cap I plus
The official IB curriculum provides formulas in various contexts, but they are often scattered across the syllabus. A "repack" or condensed formula booklet compiles all microeconomics, macroeconomics, international economics, and development economics formulas into one concise document.
the fraction with numerator % space change in cap Q sub x and denominator % space change in cap P sub y end-fraction Surplus Calculations
Real GDP=Nominal GDPGDP Deflator×100Real GDP equals the fraction with numerator Nominal GDP and denominator GDP Deflator end-fraction cross 100 Keynesian Multiplier Mechanics It’s way shorter and easier to navigate than
Inflation Rate=CPIYear 2−CPIYear 1CPIYear 1×100Inflation Rate equals the fraction with numerator CPI sub Year 2 end-sub minus CPI sub Year 1 end-sub and denominator CPI sub Year 1 end-sub end-fraction cross 100
Immediate access to formulas during revision reduces time spent searching through textbooks.
Interpretation: An increase represents an improvement; a decrease represents a deterioration. Section 4: Economic Inequality & Development Metrics