Programme Outlines and Overviews

The course introduces macroeconomic indicators, models, and theories that are useful for studying the mechanisms of an aggregate economy, in the short-, medium-, and long-term. Important elements of the course are: • Macroeconomic indicators such as gross domestic product, CPI, inflation, and unemployment rate measures. • Real wage formation and unemployment in the labor market. • Determinants of long-run economic growth. • The financial system and the allocation of saving. • Components of aggregate spending; consumption, investments, government expenditure and net exports. • The effect of a change in aggregate spending on the equilibrium output. • The market for money and the market for goods and services. • Properties, causes, and consequences of short-run economic fluctuations. • Decisions about government spending, discretionary fiscal policy, and automatic stabilizers. • The role of the central bank and the effectiveness of monetary policy. • Effects of macroeconomic policies on inflation. • The role of the exchange rate in trade and its implication on macroeconomic policies. **Connection to Research and Practice** The macroeconomic models introduced in the course are based on research. The theories on economic growth broadly connect to JIBS research area renewal. Macroeconomic indicators, theories, and models are put into practice through the exercises and the assignment, which involve real-world issues.