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Economics
Lessons
  • CFA Level 2: Economics - Introduction
  • Economic Growth
  • Changes in Productivity: The One-Third Rule
  • The Productivity Curve
  • Economic Growth Theories
  • Government Regulation, Deregulation, and Regulatory Behaviour
  • Gross Domestic Product (Measuring Economic Activity)
  • International Trade & Trade Restrictions
  • Balance of Payments
  • Foreign Exchange Rate Systems and Parity Relationships
  • Foreign Exchange Floating Rate Systems
  • Fixed Exchange Rate Systems
  • Overview of Currency Markets
  • Forward Exchange Rates
  • Interest Rate Parity
  • Purchasing Power Parity (PPP)
  • International Fisher Relation
  • Uncovered and Covered Interest Rate Parity Relationship
  • Forecasting Exchange Rates
  • CFA Level 2 Economics – Recommendations

The Productivity Curve

The productivity curve places Real GDP/Labor Hour (or productivity) on the y-axis and Capital per Hour of Labor on the x-axis.

  • When physical capital (factories, equipment, etc.) increases, a country moves upward along the productivity curve.
  • Technology advances shifts the productivity curve upward.

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