2024 CFA© Program Curriculum - Level Prerequisite Reading - Volume 2 - Economics

✍ Scribed by CFA Institute

• Publisher: CFA Institute
• Year: 2024
• Tongue: English
• Leaves: 242
• Edition: 2024
• Category: Library

✦ Table of Contents

How to Use the CFA Program Curriculum
Errata
Economics
Learning Module 1 Topics in Demand and Supply Analysis
Introduction
Demand Concepts
Price Elasticity of Demand
Extremes of Price Elasticity
Predicting Demand Elasticity, Price Elasticity, and Total Expenditure
Income Elasticity of Demand, Cross-Price Elasticity of Demand
Cross-Price Elasticity of Demand
Substitution and Income Effects; Normal Goods, Inferior Goods, and Special Cases
Normal and Inferior Goods
Supply Analysis: Cost, Marginal Return, and Productivity
Marginal Returns and Productivity
Marginal Revenue, Marginal Cost and Profit Maximization; Short-Run Cost Curves: Total, Variable, Fixed, and Marginal Costs
Understanding the Interaction between Total, Variable, Fixed, and Marginal Cost and Output
Summary
Practice Problems
Solutions
Learning Module 2 Introduction to the Firm and Market Organization
Analysis of Market Structures
Analysis of Market Structures
Perfect Competition
Demand Analysis in Perfectly Competitive Markets
Other Factors Affecting Demand
Consumer Surplus: Value minus Expenditure
Supply Analysis, Optimal Price, and Output in Perfectly Competitive Markets
Optimal Price and Output in Perfectly Competitive Markets
Long-Run Equilibrium in Perfectly Competitive Markets
Monopoly Markets: Demand/Supply and Optimal Price/Output
Demand Analysis in Monopoly Markets
Supply Analysis in Monopoly Markets
Optimal Price and Output in Monopoly Markets
Price Discrimination and Consumer Surplus
Monopoly Markets: Long-Run Equilibrium
Summary
References
Practice Problems
Solutions
Learning Module 3 Aggregate Output, Prices, and Economic Growth
Introduction
Aggregate Output and Income
Gross Domestic Product
The Components of GDP
Relationship among Saving, Investment, the Fiscal Balance and the Trade Balance
Aggregate Demand and Aggregate Supply
Aggregate Demand
Aggregate Supply
Shifts in the Aggregate Demand Curve
Equilibrium GDP and Prices
Economic Growth and Sustainability
The Production Function and Potential GDP
Sources of Economic Growth
Measures of Sustainable Growth
Measuring Sustainable Growth
Summary
References
Practice Problems
Solutions
Learning Module 4 Introduction to Business Cycles
Introduction
Consumer Behavior
Consumer Confidence
Measures of Consumption
Income Growth
Saving Rates
Housing Sector Behavior
Available Statistics
Sensitivity to Interest Rates and Relationship to Credit Cycle
The Role of Demographics
Impact on the Economic Cycle
External Trade Sector Behavior
Cyclical Fluctuations of Imports and Exports
The Role of the Exchange Rate
Overall Effect on Exports and Imports
Unemployment
The Unemployment Rate
Overall Payroll Employment and Productivity Indicators
Inflation
Deflation, Hyperinflation, and Disinflation
Measuring Inflation: The Construction of Price Indexes
Price Indexes and Their Usage
Explaining Inflation
Summary
Practice Problems
Solutions
Learning Module 5 Monetary and Fiscal Policy
Introduction to Monetary and Fiscal Policy
Money: Functions, Creation, and Definition
The Functions of Money
Paper Money and the Money Creation Process
Definitions of Money
Money: Quantity Theory, Supply and Demand, Fisher Effect
The Demand for Money
The Supply and Demand for Money
The Fisher Effect
The Costs of Inflation
Summary
Practice Problems
Solutions
Learning Module 6 International Trade and Capital Flows
Introduction & International Trade: Basic Terminology
International Trade
Patterns and Trends in International Trade and Capital Flows
Comparative Advantage and the Gains from Trade: Absolute and Comparative Advantage
Gains from Trade: Absolute and Comparative Advantage
Ricardian and Heckscher–Ohlin Models of Comparative Advantage
Balance of Payments: Accounts and Components
Balance of Payments Accounts
Balance of Payments Components
National Economic Accounts and the Balance of Payments
Summary
References
Practice Problems
Solutions
Learning Module 7 Currency Exchange Rates
Introduction & The Foreign Exchange Market
Market Functions
Exchange Rates and the Trade Balance: The Elasticities Approach
Exchange Rates and the Trade Balance: The Absorption Approach
Summary
Practice Problems
Solutions
Glossary