Ib Economics Hl Formula Booklet
⚠️ The booklet contains — only formulas, multipliers, and some tax/Math rules.
The area below the demand curve and above the market price.
CPI=Cost of Basket in Current YearCost of Basket in Base Year×100CPI equals the fraction with numerator Cost of Basket in Current Year and denominator Cost of Basket in Base Year end-fraction cross 100
HL students must analyze the financial health of firms operating under different market structures.
The Quantity Theory of Money ( MV = PY ) uses flows over time. A common error is plugging in the money supply (stock) directly without considering velocity. Tip: The booklet won’t define velocity for you — memorize it: average number of times a currency unit is spent per year. ib economics hl formula booklet
The IB provides a data booklet containing formulas, but knowing a formula exists is not the same as knowing when and how to apply it. You must understand the economic intuition behind the math. Comprehensive Breakdown of Core HL Formulas
PS=12×Base×HeightPS equals one-half cross Base cross Height Theory of the Firm (Costs, Revenues, and Profits)
Area=12×Base×HeightArea equals one-half cross Base cross Height 3. Unit 3: Macroeconomics Formulas
So use the booklet for what it is: . Free up your working memory for diagram analysis, real-world examples, and critical evaluation — the skills that earn top marks in Papers 1 and 2. ⚠️ The booklet contains — only formulas, multipliers,
The cost of producing one extra unit of output.
Moving between nominal and real values using the GDP deflator.
Why it matters: The IB frequently asks: “Evaluate the effectiveness of fiscal policy in a small, open economy.” Using the MPM formula shows that a stimulus leaks out via imports, reducing the multiplier from 5 to perhaps 2. This demonstrates real-world understanding — a key assessment objective.
PED=%ΔQd%ΔPPED equals the fraction with numerator % cap delta cap Q sub d and denominator % cap delta cap P end-fraction The Quantity Theory of Money ( MV =
Which (e.g., Keynesian multiplier, linear supply functions) you find hardest?
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Covers national income accounting and growth indicators. Key formulas include: GDP (Expenditure Method): Real GDP: Keynesian Multiplier:
Shorter calculation sub-questions within the data response section.
Paper 3 is specifically calculation-heavy for HL students. To maximize the booklet's utility: IB Economics HL Formula Booklet | PDF - Scribd