In XED and YED calculations, the sign determines the economic relationship. A negative XED is not "wrong"; it indicates complementary goods. Dropping the negative sign in XED/YED (as is done in PED) results in a loss of marks for evaluation.
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(Terms of Trade and Gini coefficients). You must be able to perform these calculations and interpret the results in the context of economic theory worked example of a Paper 3 calculation, such as finding the market equilibrium with linear functions or calculating the Keynesian multiplier IB Economics HL Formula Booklet | PDF - Scribd ib economics hl formula booklet
$$ToT = \frac\textIndex of Export Prices\textIndex of Import Prices \times 100$$
This metric measures the relative purchasing power of a nation's exports. In XED and YED calculations, the sign determines
Unemployment Rate=Number of UnemployedLabor Force×100Unemployment Rate equals the fraction with numerator Number of Unemployed and denominator Labor Force end-fraction cross 100 The Keynesian Multiplier The Multiplier ( ):
1MPM+MPT+MPSthe fraction with numerator 1 and denominator cap M cap P cap M plus cap M cap P cap T plus cap M cap P cap S end-fraction : How to Use the Formula Booklet Effectively in 2026 This public link is valid for 7 days
Interpretation: An increase represents an improvement; a decrease represents a deterioration. Section 4: Essential Mathematical Tools
Marginal Propensity to Withdraw (MPW)=MPS+MPT+MPMMarginal Propensity to Withdraw (MPW) equals MPS plus MPT plus MPM
YED=%ΔQd%ΔYYED equals the fraction with numerator % cap delta cap Q sub d and denominator % cap delta cap Y end-fraction