Macroeconomics

Semester
3.
ECTS credits
6 ECTS

Goal

To enable students to acquire the knowledge and skills necessary to understand the behavior of the economy over time, to explore the causes and consequences of fundamental macroeconomic problems, and to evaluate the effects of macroeconomic policy—primarily monetary and fiscal—on the behavior and performance of the economy across different time periods and markets.
Within the course, students are encouraged to apply a systematic and model-based approach to analysing national and global economic phenomena, processes, and challenges, as well as to assessing the effects of macroeconomic policy and the performance of the economy.

Additional info
  1. Introduction to Macroeconomics. Economics as a science (economic theory and models; positive vs. normative economics; microeconomics vs. macroeconomics). Organisation and behavior of the economy. Measurement of economic activity. GDP, welfare, and happiness. Introduction to macroeconomic policy. Macroeconomic challenges: business cycles, unemployment, inflation, twin deficit.
  2. Macroeconomic theories and models. The AS-AD model. Leading macroeconomic paradigms. The goods and services market model in the short run (AE model) and the long run (classical model). Money and financial institutions. The bond market model. The money market model in the short and long run. The IS-LM model. The labour market model with flexible and rigid wages. Exogenous supply shocks. Unemployment and inflation: Phillips curves. The effects of macroeconomic policy within the studied models.
  3. Open economy macroeconomics: models of a small open economy in the goods and services market in the short run (AE model) and the long run (classical model). Exchange rates and the foreign exchange market model. Real exchange rate, macroeconomic policy, and macroeconomic performance. Balance of payments. Internal and external equilibrium. The IS-LM model in an open economy. The effects of macroeconomic policy within the studied models of a small open economy.
  4. Economic growth: basic concepts.
Lectures: 45
Seminars: 0
Exercises: 30
  • Define fundamental macroeconomic terms and concepts.
  • Calculate the values of key macroeconomic variables and interpret the obtained results.
  • Evaluate the effects of macroeconomic policy using the fundamental macroeconomic models studied.
  • Recommend appropriate macroeconomic policies aimed at achieving specified macroeconomic objectives.
  • Integrate knowledge about the behavior of key macroeconomic variables and markets over time.
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