The terms of trade (TOT) measures the ratio of export prices to import prices, such that: where is a price…

## Consumer Price Index (CPI) and inflation rate formula

Consumer price index formulaCalculate CPI with one goodCalculate CPI with two goodsInflation rate formulaCalculate inflation rate with one goodCalculate inflation…

## Why does aggregate supply slope upwards?

The aggregate supply curve does not slope upwards for the same reason that the supply curve slopes upwards for an…

## Net foreign investment formula

Net foreign investment (which is also referred to as net capital outflow) is the total amount of investment overseas done…

## Natural rate of unemployment

The natural rate of unemployment or Non-Accelerating Inflation Rate of Unemployment (NAIRU) is the rate of unemployment at which inflation…