BSc in Business Administration and Service Management
Macroeconomics
About the course
What you will learn
Course aim: The purpose of the course is to give students an understanding of (i) movements in the economy over the business cycle, (ii) macroeconomic stabilisation policy (monetary and fiscal) in closed and open economies, and (iii) basic aspects of financial markets and expectations.
- Explain basic macroeconomic terminology (e.g. "growth", "recession", "natural unemployment", "trade balance deficit" etc.) in a comprehensive way
- Describe how real GDP is determined in the short and medium run.
- Describe the main determinants of other important macroeconomic variables such as inflation, unemployment, real wage, interest rate, exchange rate etc.
- Perform simple algebraic calculations related to developments in the main macroeconomic variables
- Describe and explain the assumptions and relations of the main macroeconomic models (e.g. IS/LM).
- 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.
- Solve algebraically simple macroeconomic models in order to determine the value of the variables in equilibrium (national income, interest rate, consumption, investment etc.)