This section covers the behavior of individual economic agents—consumers, firms, and markets. It’s heavy on elasticity, costs, revenues, and market structures. Here’s how to repack it.
: Price responsiveness factor (determines the steepness/slope of the curve) Market Equilibrium Qd=Qscap Q sub d equals cap Q sub s
GNI=GDP+Net Income from AbroadGNI equals GDP plus Net Income from Abroad Nominal vs. Real GDP ib economics hl formula booklet repack
The multiplier effect measures the proportional change in national income caused by an injection of autonomous spending. Marginal Propensities The allocation of any additional unit of national income ( ) must equal 1. MPC+MPS+MPT+MPM=1MPC plus MPS plus MPT plus MPM equals 1 Variables: : Marginal Propensity to Consume : Marginal Propensity to Save : Marginal Propensity to Tax : Marginal Propensity to Import Marginal Rate of Leakages (MPL) = MPS + MPT + MPM The Keynesian Multiplier ( Formula:
%Δ=New Value−Old ValueOld Value×100% cap delta equals the fraction with numerator New Value minus Old Value and denominator Old Value end-fraction cross 100 1.2 Consumer and Producer Surplus This section covers the behavior of individual economic
Nominal GDP measures output at current market prices, while Real GDP adjusts for inflation using a GDP deflator.
GDP Deflator=Nominal GDPReal GDP×100GDP Deflator equals the fraction with numerator Nominal GDP and denominator Real GDP end-fraction cross 100 Inflation and Consumer Price Index (CPI) MPC+MPS+MPT+MPM=1MPC plus MPS plus MPT plus MPM equals
This write-up covers the essential formulas and quantitative concepts found in a standard "repack" of the IB Economics HL Formula Booklet
The area above the supply curve and below the equilibrium price market line. Social Surplus (Community Surplus) Formula: