Ib Economics Hl | Formula Booklet Repack ((better))

IB Economics HL Formula Booklet — Repack Overview

This resource explains, organizes, and critiques the core formulas and related concepts that typically appear in an IB Economics Higher Level (HL) formula booklet (repackaged for clarity and study use). It covers what formulas are essential, how to interpret and apply them, common pitfalls, and concise worked examples that show how the formulas connect to HL assessment objectives.

• Repack: TOT > 100 → each export buys more imports (favorable).

The solution: Print the official booklet, grab three highlighters, and physically repack it. Or, build your own condensed reference card (a "repack") that fits on one A4 sheet. ib economics hl formula booklet repack

5. International Economics

Terms of Trade (HL)

[ \textTOT = \frac\textExport price index\textImport price index \times 100 ] IB Economics HL Formula Booklet — Repack Overview

Step 4: The "If-Then" Flowchart On a blank page at the front of your repack, draw a decision tree: Repack : TOT > 100 → each export

• MPC (Marginal Propensity to Consume): ΔConsumption / ΔIncome
• MPS (Marginal Propensity to Save): 1 – MPC (or ΔSavings / ΔIncome)
• Simple Multiplier (Closed economy): 1 / (1 – MPC) OR 1 / MPS
• Tax Multiplier: –MPC / (1 – MPC) [Note negative sign!]
• Government Spending Multiplier: 1 / (1 – MPC) [Always larger than tax multiplier in absolute value]
• Inflation rate (CPI): (CPI Year 2 – CPI Year 1) / CPI Year 1 × 100
• Unemployment rate: (Number unemployed / Labor force) × 100
• GDP Deflator: (Nominal GDP / Real GDP) × 100
• Money Multiplier: 1 / Reserve Ratio

• Left side: Calculations for GDP deflator.
• Middle: The spending multiplier (1/(1-MPC) and Tax multiplier (-MPC/(1-MPC)).
• Right side: The trade balance formula and how a change in the multiplier affects it.

Consumer Surplus: Area above the price and below the demand curve: