Do we use ln in the part of the equation relating to output?
The book says “y = the log of the current level of ouptut.”
But on the sample exam, they just gave current level of output and used that.
I’m assuming we need to know this since CFAI covered it but schweser did not?
Yeah, it doesn’t appear to be the most impt formula. But it’s not too bad to memorize. It was one of this year’s sample exam which apparently means it was on a previous actual exam. So I took the time to at least know the formula and the concept behind it.
The weird thing is its not mentioned in any LOS yet it’s part of the CFAI curriculum
Those LOS’s are very broad. CFA would argue that anything in those books falls under one of them. Schweser takes them very literally. I would be it falls under something about monetary policy and exchnage rates.