All Macroeconomics Formulae From Class XI WBCHSE Economics Syllabus : Covered

The two separate methods of calculating Index Number :-

• Simple Aggregative Method
• Weighted Aggregative Method

Simple Aggregative Method

I_on = {∑(p_ni/p_0i) x 100}/k     Please note that 'x' denotes multiplication and k refers to the number of commodities the index number is being calculated for.Also,p_ni and p_0i denote prices in the current year and that in the base year respectively.

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Weighted Aggregative Method

I_on = {∑(p_ni/p_0i) x w_i x 100}/∑w_i  Please note that 'x' denotes multiplication and w_i refers to the weightage value of the particular commodity.Also,p_ni and p_0i denote prices in the current year and that in the base year respectively.

Domestic Product (DP)

• GDP = Consumption + Investment + Government Expenditure + (Exports - Imports)

•     NDP = GDP - Depreciation 

• NGDP = Volumes of production of goods and services within the economy during the year multiplied by their prices and added by avoiding multiple counting

• RGDP = Considering a particular year as a base year,we have to find values of volumes of production in the current year and add them up.

Therefore RGDP = (Nominal GDP of Current Year x 100)/Price Index number of Current year with respect to base year

• Per Capita Real Gross Domestic product = RGDP of the country during the particular year/Population of the country during the mid-point of the year

Per Capita Nominal Gross Domestic product = NGDP of the country during the particular year/Population of the country during the mid-point of the year

National Product (NP)

• GNP = Consumption + Investment + Government Expenditure + (Exports - Imports) + NR (Net Income Receipts) - NP (Net payment outflow to foreign assets) 

= GDP + NR (Net Income Receipts) - NP (Net payment outflow to foreign assets) 

• GNP = Gross Value of Output of the Public Sector + Gross Value Added by the Public Sector Enterprises + Value of Public Sector's Common Services

• NNP = Net Indirect Taxes (By considering market prices) but since this does not give us a relation between NNP and NNI,we have to obtain it by establishing the following connection.

NNP at Market Prices Less Net Indirect Taxes = NNP at Factor Costs = NNI

NNP = GNP - Depreciation 

• NGNP = If current prices are used for valuation of GDP,we get NGNP or GNP at current prices.

• RGNP = There are two methods of calculation of RGNP.In the first method,we have to consider a particular year to be the base year and then calculate the values of production in different years.The figures obtained are known as GNP at constant price or Real GNP.

Secondly, RGNP = NGNP/Price Index number of Current year with respect to base year

• Per Capita Real Gross National product = RGNP of the country during the particular year/Population of the country during the mid-point of the year

Per Capita Nominal Gross National product = NGNP of the country during the particular year/Population of the country during the mid-point of the year

Gross National Expediture (GNE)

• GNE = Consumption Expenditure + Investment Expenditure + Public Sector's Expenditure on Common Services 

Gross National Income (GNI)

• GNI = (Wage Bill of Private Sector + Wage Bill of Public Sector) + (Rents paid by Private Sector + Rents Paid by Public Sector) + (Gross Profit of Private Enterprises + Gross Profit of Public Enterprises)

Market Price

• Market Price = Factor Costs + Indirect Taxes - Subsidies 

= Factor Costs + Net Indirect Tax

Personal Income

• Personal Income = National Income +Transfer Receipts 

Personal Disposable Income

• Personal Disposable Income = Personal Income - Direct Taxes

= National Income +Transfer Receipts - Direct Taxes

Real Income (For calculation of Deflation)

• Real Income = National Income at Current Price/Price Level 

Per Capita Income

• Per Capita Income = National Income/Total Population

Rate of Inflation

• {(Price in the current year - Price in the base year)/Price in the current year x 100}%

Rate of Unemployment 

• {(Supply - Demand)/Supply x 100}%

Book/Knowledge Material Credit : 'Higher Secondary Economics Class XI by Jaydeb Sarkhel' Printed by Orient Blackswan on behalf of West Bengal Council of Higher Secondary Education (WBCHSE).

Point of Note : Have you noticed that a lot of these formulas talk about a change over a period of time in the numerical values,better to say in the magnitude of the numerical values.Isn't that the way we view calculus?What relations may these formulas have with calculus?Would be glad if anyone can throw a little light on this context.