Change in GDP = Initial spending × Multiplier. Example: Government spends $10M, MPC = 0.8 → k = 5 → Total GDP change = $50M.
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To maximize point recovery in Paper 3, avoid jumping straight into calculations. Follow this structured process for every quantitative prompt: ib economics hl formula booklet repack
: Calculating the Gini Coefficient using the area between the Lorenz Curve and the line of perfect equality ( Why a "Repack" is Necessary for Success
Always negative due to the law of demand (ignore the sign for interpretation). Key Ranges: (Elastic), (Inelastic), (Unit Elastic). Cross-Price Elasticity of Demand (XED) Change in GDP = Initial spending × Multiplier
The IB awards partial credit for correct steps, even if your final calculation is wrong. Never write down just the final answer.
Macroeconomic math focuses on measuring national income, modeling economic activity, and evaluating the impacts of fiscal policies. 2.1 Measuring Economic Activity Never write down just the final answer
Marginal Revenue (MR)=ΔTRΔQMarginal Revenue (MR) equals the fraction with numerator cap delta TR and denominator cap delta cap Q end-fraction
Measures responsiveness of quantity supplied to a change in price.
Producer Surplus (PS)=12×Qequilibrium×(Pequilibrium−Pintercept)Producer Surplus (PS) equals one-half cross cap Q sub equilibrium end-sub cross open paren cap P sub equilibrium end-sub minus cap P sub intercept end-sub close paren
