Christian Matriculation Higher Secondary School, Oddanchatram.

XII Economics (Lesson wise Equations)

S.No Content Equation
1 Two sector economy Y=C+I
2 Three sector economy Y = C + I+ G
3 Four sector economy Y = C + I + G + (X-M)
4 GDP C + I + G + (X-M)
5 Net domestic product GDP – Depreciation

6 GDP at market price + Net factor income

GNP market price
from abroad
National income
7 Per capita income ---------------------
population
Nominal GDP
8 GDP Deflator ----------------- X 100
Real GDP
National income at constant National income at current price
9
price P1 / P0
10 Income method Y = w + r + i + π + (R- P)
11 Expenditure method GNP = C + I + G + (X-M)
12 Effective demand ED = Y = C + I = Output =Employment
C + S + T + Rf = aggregated income
13 Aggregate Supply
generated in the economy
14 Consumption function C = f ( Y)
15 Average Propensity to Consume C/Y
16 Marginal Propensity to Consume ∆C / ∆Y (or) MPC = 1- MPS
17 Average Propensity to Save S/Y
18 Marginal Propensity to Save ∆S / ∆Y (or) MPS = 1- MPC
19 Investment function I = f ( r)
20 Multiplier K = ∆Y / ∆ I or K =1 / 1-MPC
21 Accelerator β = ∆ I/ ∆C
22 Fisher’s Quantity theory of MV = PT
money
23 Cash Balance Approach M = KPY
( Marshall Equation)
Px
24 Net Barter Terms of Trade T n = ------- x100
Pm
Qx
25 Gross Barter Terms of Trade T g = ------- x100
Qm
Px
26 Income Barter Terms of Trade Ty = ------- x100
Pm
Px
27 Single Factorial Terms of Trade T f = ------- Fx
Pm
Px Fx
28 Double Factorial Terms of Trade T = ------- X -------
ff
Pm Fm
Balance of Payments R
29 ------- = 1
Disequilibrium
P
R
30 Favourable balance of payments ------- > 1
P
Un favourable balance of R
31 ------- < 1
payments
P
e Pf
32 Real Exchange Rate -------
P
33 Balanced Budget Govt. Revenue = Govt. Expenditure
34 Surplus Budget Govt. Revenue > Govt. Expenditure
35 Deficit Budget Govt. Revenue < Govt. Expenditure

√(𝑋 − 𝑋 )2
36 Standard Deviation _________
n
L.KARTHICK, M.A, M.Phil, B.Ed (Dept. of Economics)

Christian Matric.Hr.Sec. School, Oddanchatram.

Cell: 9486125739