This study session begins by introducing fundamental concepts of demand and
supply analysis for individual consumers and firms. Also covered are the various
market structures (perfect competition, oligopoly, monopoly) in which firms operate.
Key macroeconomic concepts and principles then follow, including aggregate output
and income measurement, aggregate demand and supply analysis, and analysis of
economic growth factors. The study session concludes with coverage of the business
cycle and its effect on economic activity.
Reading 14 Topics in Demand and Supply Analysis
Reading 15 The Firm and Market Structures
Reading 16 Aggregate Output, Prices, and Economic Growth
Reading 17 Understanding Business Cycles
STUDY SESSION 5 Economics (2)
This study session begins with monetary and fiscal policy, including their use by
central banks and governments. Economics in a global context is then introduced.
Next follows a discussion on the flows of goods and services and physical and finan-
cial capital that occur across national borders. Highlighted in the discussion are the
relationships between different types of flows and the benefits of trade to trade part-
ners. Finally, given that operations and investments in global markets involve foreign
exchange (currency) risk, the session concludes with an overview of currency market
Reading 18 Monetary and Fiscal Policy
Reading 19 International Trade and Capital Flows
Reading 20 Currency Exchange Rates