• Explain basic macroeconomic terminology (e.g. “GDP”, "growth", "recession", "natural unemployment", "trade balance deficit", “exchange rates” etc.) in a comprehensive way.
• Describe and calculate how output, unemployment, interest rates and real wages are determined in the short and medium run.
• Describe and calculate the equilibrium in the goods, financial and labor markets both in the short and medium run.
• Describe the role of money, how it is created and controlled, and what determines its supply and demand.
• Describe and explain the effects of fiscal and monetary policy within the main macroeconomic models (e.g. the IS/LM model, the AD/AS model, etc.).
• Illustrate diagrammatically these models, perform policy experiments (like increasing government spending or changing the money supply) and interpret verbally what happens when moving from one equilibrium to another.

Macroeconomics introduces students to economic issues and mainstream theories related to the entire national economy as well as the world economy. The course introduces the system of national income accounts and national statistics and its use in terms of measuring the overall material standard of living, price levels, inflation, unemployment, exchange rates, trade balance etc. Students will learn how to look at how these entities are determined in the short and medium run, and then look at the notion of money, how money is created and controlled by the Central Bank, and how the supply of money influences price levels in the medium run.

Students will be asked to consider the situation where prices and wages are stable, how the result may cause overheating or recessions, and how fiscal policy (government expenditure and taxes) and monetary policy (Central Bank regulation of the money market) can be used to alleviate this situation. Another subject is the causes of unemployment and the phenomenon itself and how it relates to the movement of prices and wages, after which focus will shift to open economies where goods, people, and capital are traded with other countries, and how the nature of macroeconomic policy changes in an open economy.

To be announced on Learn