• Explain basic macroeconomic terminology (e.g. "growth", "recession", "natural unemployment", "hyper inflation", "trade balance deficit" etc.) in a comprehensive way.
• Describe how real GDP is determined in the short run, the long run and the very long run.
• Describe the main determinants of other important macroeconomic variables such as inflation, unemployment, real wage, interest rate, exchange rate etc.
• Perform simple algebraically calculations related to developments in the main macroeconomic variables.
• Describe and explain the assumptions and relations of the main macroeconomic models (e.g. the classical model for the economy in the long run, the IS/LM model, the Solow growth model, the AD/AS model, etc.).
• Illustrate diagrammatically these models, perform policy experiments (like increasing Government Purchases or changing the Money Supply) and interpret verbally what happens when moving from one equilibrium to another.
• Solve algebraically simple macroeconomic models in order to determine the value of the variables in equilibrium and changes in the variables (national income, interest rate, consumption, investment, etc.).

The course is an introduction to Macroeconomics, the branch of economics that studies the
behaviour of the economy as a whole. Key concepts are total production and income,
(un)employment, inflation, the rate of interest, the trade balance, exchange rates, and the like. The
aim is to be able to explain the determinants of economic developments, both in the long run and in
the short run, and to explore the scope that may exist for Government and Central Bank policy to
keep the economy on a stable course.

The course will combine lectures and exercise classes. During the lectures, the main theoretical
points of the textbook will be highlighted and related to real-life macroeconomics and economic
policy. The best way to prepare for the lectures is to study the relevant chapters of the textbook in
advance and solve the "Questions for review" accompanying each chapter. During the exercise
classes we will solve a selection of the "Problems and Applications" of the textbook, which you will
also be asked to solve for yourself in advance.

“Macroeconomics”, Mankiw, Gregory and Mark Taylor. European Edition, Worth publishers.

Please note, minor changes may occur. The teacher will uploade the final reading list to sitescape/learn two weeks before the course starts.