formulas

1. MICROECONOMICS
ISOCOST LINE:
A FIRM'S PROFIT:
π = (P -ATC) Q
MARGINAL CONDITION FOR PROFIT MAXIMIZATION:
MR=MC

2. MACROECOOMICS
Y =C +I +G + NX
S= I +NX
NCO=NX
S= I +NCO
NX=X-M
GNP= GDP+/- Net Income Factor
NNP= GNP-Depreciation
NI= NNP - Indirect Taxes +Business subsidy
PI=NI+ Transfer payments -Income taxes- Retained earnings - Contribution for
Social Securities
DI=PI- Personal taxes
DI=C+S
REAL EXCHANGE RATE =NOMINAL EXCHANGE RATE × DOMESTIC PRICE /
FOREIGN PRICE
inom= ireal+π
GDP deflator = (NOMINAL GDP / REAL GDP ) *100.
N.B. ! instead of CPI you can use GDP deflator in the inflation rate formula