Gini Coefficient

The Gini Coefficient is a statistic which summarises the distribution of income in an economy. The closer the Gini Coefficient is to $0$ the more equal the distribution of income in the economy. Conversely, the closer the Gini Coefficient is to $1$, the more unequal the distribution of income in the economy is.

$$\text{Gini Coefficient}=\frac{A}{A+B}$$

Where,

Balance of Payments

The Australian Balance of Payments has various calculation formulas which are used.

Current Account Formula
Net Goods + Net Services (the balance on goods and services)

Net Primary Income + Net Secondary Income |

Capital and Financial Account Formula
Capital Account + Direct Investment + Portfolio Investment

Other Investment + Reserve Assets + Financial Derivatives |

Balance of Payments Formula
Current Account + Capital and Financial Account

Net Errors and Omissions = 0 |

Terms of Trade (TOT)

$$TOT=\frac{P_X}{P_m}\times 100$$

Where,

Economic Equilibrium

There are various formulas which you can use that relate to economic equilibrium.

Leakages and Injections

$$Leakages = Injections \\S+T+M=I+G+X$$

Where,

Aggregate Demand

$$AD=C+I+G+(X-M)$$

Where,

Aggregate Supply

$$Y=C+S+T$$

Where,

Equilibrium Occurs When:
Aggregate Supply = Aggregate Demand

$Y = AD$ | | Substituting For Aggregate Demand Gives:

$Y=C+I+G+(X-M)$ | | Substituting For Aggregate Supply Gives:

$C+S+T=C+I+G+(X-M)$ | | By Rearranging the Equation:

$S+T+M=I+G+X$

Leakages = Injections |

The Simple Multiplier

$$k=\frac{1}{MPS}=\frac{1}{1-MPC}$$

Where,

NOTE: $MPS+MPC=1$

National Income (Using Simple Multiplier)

$$\Delta Y=k\times\Delta AD$$

Where,

Unemployment Rate (%)

$$Unemployment\;Rate\;(\%)=\frac{Unemployed\; Persons}{Total\; Labour\; Force}\times 100$$

Where,

Labour Force Participation Rate (%)

$$Labour\;Force\;Participation\;Rate\;(\%)=\frac{Labour\;Force}{Working\;Age\;Population}\times100$$

Where,

Headline Inflation (CPI)

$$Inflation \;Rate\; (\%)= \frac{CPI_{CY}-CPI_{PY}}{CPI_{PY}}\times 100$$

Where,