Browse CFA Level 1

Chapter 3: Business Cycles

Chapter 3: Business Cycles (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.

In this section

  • Measuring GDP and National Income
    Measuring GDP and National Income (CFA Level 1): Understanding the Concept of GDP, Approaches to Measuring GDP, and Expenditure Approach. Key definitions, formulas, and exam tips.
  • Real vs. Nominal GDP
    Real vs. Nominal GDP (CFA Level 1): Understanding Nominal GDP, Real GDP and the Role of Inflation, and Calculating Real GDP: Basic Approach. Key definitions, formulas, and exam tips.
  • Aggregate Demand and Aggregate Supply Model
    Aggregate Demand and Aggregate Supply Model (CFA Level 1): Aggregate Demand: Key Components, Short-Run Aggregate Supply (SRAS), and Long-Run Aggregate Supply (LRAS). Key definitions, formulas, and exam tips.
  • Short-Run vs. Long-Run Aggregate Supply
    Short-Run vs. Long-Run Aggregate Supply (CFA Level 1): Why We Care About Aggregate Supply, Short-Run Aggregate Supply: The Upward Sloping Curve, and Positive Shifts in SRAS. Key definitions, formulas, and exam tips.
  • Phases of the Business Cycle
    Phases of the Business Cycle (CFA Level 1): Business Cycle in Context, Defining the Business Cycle, and Core Phases of the Business Cycle. Key definitions, formulas, and exam tips.
  • Economic Indicators (Leading, Coincident, Lagging)
    Economic Indicators (Leading, Coincident, Lagging) (CFA Level 1): Why Indicators Matter, Leading Indicators, and Quick Anecdote. Key definitions, formulas, and exam tips.
  • Credit Cycles and the Role of Inventories
    Credit Cycles and the Role of Inventories (CFA Level 1): Test Your Knowledge: Credit Cycles and Inventory Dynamics and During a credit expansion, how do manufacturers typically. Key definitions, formulas, and exam tips.
  • Unemployment and Output Gaps
    Unemployment and Output Gaps (CFA Level 1): Understanding Unemployment, Why Unemployment Matters to Investors, and Concept of Potential Output. Key definitions, formulas, and exam tips.
  • Okun’s Law and Economic Growth
    Okun’s Law and Economic Growth (CFA Level 1): Understanding the Relationship Between GDP Growth and Unemployment, Empirical Nature of Okun’s Law, and Interpreting Okun’s Coefficient. Key definitions, formulas, and exam tips.
  • Hysteresis in Unemployment
    Hysteresis in Unemployment (CFA Level 1): Defining Hysteresis, Key Mechanisms Behind Hysteresis, and Why Hysteresis Matters for Business Cycle Analysis. Key definitions, formulas, and exam tips.
  • Measuring Potential Output and Output Gap Approaches
    Measuring Potential Output and Output Gap Approaches (CFA Level 1): Understanding Potential Output, Why Potential Output Matters for Policy and Forecasting, and Approaches to Measuring Potential Output. Key definitions, formulas, and exam tips.
  • Labor Market Dynamics (Frictional, Structural, Cyclical Unemployment)
    Labor Market Dynamics (Frictional, Structural, Cyclical Unemployment) (CFA Level 1): Theoretical Foundations of Unemployment, Frictional Unemployment, and Causes. Key definitions, formulas, and exam tips.

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Chapter 2: The Firm and Industry Organization
Chapter 4: Inflation and Deflation