# Economics Calculators

## Macroeconomics

• Average Propensity to Save – The percentage of total income that is put into savings.
• Average Propensity to Consume – The ratio of consumption to total income.
• Consumption Function – Calculates the relationship between consumption and disposable income.
• Fisher Equation – Connects the relationship between real interest rates, nominal interest rates, and inflation.
• GDP (expenditure and income approaches) – A measure of all goods and services produced over a period of time.
• GDP Deflator – The difference between nominal and real GDP.
• GDP Growth Rate – The difference in GDP between two years.
• Income Elasticity of Demand – How much the demand for a good or service will increase if income increases.
• Inflation Rate – The amount the CPI (consumer price index) is increasing.
• Labor Force Participation Rate – The percentage of people who are in the labor force (number of employed and unemployed) out of all people in the population.
• Labor Force – The total number of people who are employed or unemployed.
• Marginal Propensity to Consume – The amount consumption will increase (or decrease) for every increase (or decrease) in disposable income.
• Marginal Propensity to Import – The amount imports will increase (or decrease) for every increase (or decrease) in disposable income.
• Marginal Propensity to Save – The amount savings will increase (or decrease) for every increase (or decrease) in disposable income.
• Money Multiplier – The maximum amount of commercial bank money that can be created in a fractional-reserve banking system.
• National Savings – Total of both public savings and private savings in an economy.
• Net Capital Outflow – Measures the flow of capital in and out of an economy.
• Net Exports – Total exports in an economy minus total imports.
• Public Savings – The excess revenue a government brings in over their expenses.
• Private Savings – The amount an economy saves. Calculated as total income less taxes and consumption.
• Quantity Theory of Money (Money Supply, Velocity, Average Price Level, and Volume of Transactions) – Balances the price level of goods and services with the amount of money in circulation in an economy.
• Real Exchange Rate – An indication of what an equivalent good would cost in your economy.
• Real GDP – A variation of GDP adjusted for price changes such as inflation and deflation.
• Real Interest Rate – Interest rate adjusted for the inflation rate.
• Savings Function – Describes the relationship between income and consumption. Paired with consumption function.
• Spending Multiplier (Save and Consume) – The expectation of how much activity an investment will make.
• Tax Multiplier (Simple and Complex) – The amount that a decrease in taxes will generate in the economy.
• Unemployment Rate – The ratio of unemployed people to total people in the workforce.

## Microeconomics

• Accounting Profit – Method of calculating profit. Used for taxation purposes.
• Average Cost – The average cost per unit produced.
• Average Fixed Cost – The amount of fixed cost per item produced.
• Average Variable Cost – Cost per unit of costs that are variable.
• Average Revenue – The revenue received per item sold.
• Cross Price Elasticity of Demand – How much the price change of one item will affect the demand of another item.
• Economic Profit – Method of calculating profit. Used to determine current value instead of taxes.
• Elasticity – How much one thing (such as quantity) changes when another thing (such as price) changes.
• Marginal Cost – The cost of producing one additional unit. Indicates an incremental cost change.
• Marginal Product – The ratio of change between an input and an output.
• Marginal Revenue – Incremental revenue from selling an additional unit.
• Midpoint Elasticity – An alternate way of calculating elasticity.
• Price Elasticity of Demand – How the quantity demanded will change when the price changes.
• Price Elasticity of Supply – How responsive supply of an item is in relation to changes in its price.
• Profit (from total and average) – The amount of money a firm makes. Calculated as revenue minus expenses.
• Total Cost – All the costs of the firm. Includes fixed costs and variable costs.
• Total Revenue – All the money a company receives for all the goods and services it sells.