AP Economics Formula Sheet | Free Printable Reference | SidTutor
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AP Economics Formula Sheet

Every formula you need for AP Microeconomics and AP Macroeconomics in one printable reference. No formula sheet is provided on exam day — memorize these.

Elasticity

Price Elasticity of Demand (Midpoint) PED = (%ΔQd) / (%ΔP)
Midpoint Formula %Δ = (New − Old) / Average × 100
Cross-Price Elasticity XED = (%ΔQd of A) / (%ΔP of B)
Income Elasticity YED = (%ΔQd) / (%ΔIncome)
Elastic vs. Inelastic |PED| > 1 = elastic, |PED| < 1 = inelastic

Revenue & Profit

Total Revenue TR = P × Q
Average Revenue AR = TR / Q = P
Marginal Revenue MR = ΔTR / ΔQ
Total Cost TC = TFC + TVC
Average Total Cost ATC = TC / Q
Marginal Cost MC = ΔTC / ΔQ
Profit Profit = TR − TC
Per-Unit Profit Per-Unit Profit = P − ATC
Profit-Maximizing Rule Produce where MR = MC

Surplus & Welfare

Consumer Surplus CS = ½ × (Max WTP − P) × Q
Producer Surplus PS = ½ × (P − Min WTA) × Q
Total Surplus TS = CS + PS
Deadweight Loss DWL = ½ × (tax) × ΔQ

Factor Markets

Marginal Revenue Product MRP = MP × MR
Marginal Factor Cost MFC = ΔTC / ΔLabor
Profit-Max Hiring Rule Hire where MRP = MFC (= W in competitive)

GDP & National Income

GDP (Expenditure Approach) GDP = C + I + G + NX
Net Exports NX = Exports − Imports
Real GDP Real GDP = Nominal GDP / (Price Index / 100)
GDP Deflator GDP Deflator = (Nominal / Real) × 100

Unemployment & Inflation

Unemployment Rate UR = (Unemployed / Labor Force) × 100
Labor Force LF = Employed + Unemployed
Labor Force Participation Rate LFPR = (LF / Working-Age Pop.) × 100
Inflation Rate (CPI) Inflation = ((CPInew − CPIold) / CPIold) × 100
Real Interest Rate Real Rate = Nominal Rate − Inflation Rate

Multipliers

MPC + MPS MPC + MPS = 1
Spending Multiplier Multiplier = 1 / MPS = 1 / (1 − MPC)
Tax Multiplier Tax Multiplier = −MPC / MPS
Balanced Budget Multiplier BBM = 1 (always)
Change in GDP (spending) ΔGDP = ΔG × (1 / MPS)
Change in GDP (taxes) ΔGDP = ΔT × (−MPC / MPS)

Money & Banking

Money Multiplier Money Multiplier = 1 / Reserve Ratio
Max Change in Money Supply ΔMS = Excess Reserves × (1 / rr)
Required Reserves RR = Deposits × Reserve Ratio
Excess Reserves ER = Total Reserves − Required Reserves

International Trade & Finance

Balance of Payments Current Account + Capital Account = 0
Current Account NX + Net Income + Net Transfers
Terms of Trade Opportunity cost of good < Terms < Partner's OC
FAQ

Common questions

No. Unlike AP Statistics, the AP Microeconomics and AP Macroeconomics exams do not provide a formula sheet. You are expected to memorize all formulas. This reference sheet covers every formula you need to know.

The most important formulas include: Price Elasticity of Demand (midpoint method), Total Revenue (P × Q), Profit (TR − TC), the profit-maximizing rule (MR = MC), and Consumer/Producer Surplus calculations. Elasticity appears frequently on both MC and FRQ sections.

The most important formulas include: GDP (C + I + G + NX), the Spending Multiplier (1/MPS), the Money Multiplier (1/reserve ratio), the Tax Multiplier (−MPC/MPS), and the Real Interest Rate formula (nominal rate − inflation rate). Multiplier questions are among the most common on the AP Macro exam.

Yes. Print this sheet and use it as a quick reference while studying. The goal is to memorize these formulas before exam day since no formula sheet is provided during the test. Practice applying each formula to sample problems until you can recall them from memory.

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