Ib Economics Hl Formula Booklet May 2026
Unlike subjects such as Mathematics or Physics, the International Baccalaureate does not provide an official formula booklet for the Economics HL exam. Students are expected to memorize all quantitative models and equations for use in Paper 2 (data response) and Paper 3 (quantitative methods).
- $MPS$: Marginal Propensity to Save.
- $MPM$: Marginal Propensity to Import (Money leaves the economy).
- $MPT$: Marginal Propensity to Tax.
For an HL student, the primary focus for calculation questions resides in Microeconomics (Elasticities and Costs) and Macroeconomics (Keynesian Multiplier and Terms of Trade). ib economics hl formula booklet
- The booklet provides simple formulas for the Phillips Curve (
Inflation = ...), but in modern IB exams, this is usually diagram-based. The key formula here is:Actual Unemployment – Natural Rate of Unemployment = –0.5 (Inflation – Expected Inflation)