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

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