Revision:Formulae

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PED

• 
  • PED >1 elastic
  • PED <1 inelastic
  • PED =1 unitary

PES

YED

• 
  • positive = normal good
  • negative = inferior good
  • YED > 1 = luxury good

XED

• 
  • Substitutes: XED > 0
  • Complements: XED <0

Macroeconomics

• APC: the proportion of income consumed

• APS: the proportion of income saved

• 
• 
• in a simple closed economy.
• Gov. Spending
• Bank/credit
• 
  • M = Money Supply
  • V = income velocity of circulation
  • P = price level
  • Q = real GDP
  • Monetarists believe:

• Standard of Living =

If you need anymore help, here are some useful notes for IB economics: [1]

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