Rationale 

Macroeconomics will introduce students to the main macroeconomics variables (GDP, inflation, unemployment), to the aggregate demand – aggregate supply model and to the balance of payment and exchange rates. Students will learn to distinguish between inflation and unemployment and they will be trained to identify the fiscal and monetary policy tools.

Learning Outcomes

At the end of the course students will be expected to:

(i)    Measure economic variables (GNP and its components, inflation, unemployment, money supply, balance of payments, exchange rates).
(ii)   Analyse the aggregate demand – aggregate supply model, the concept of the multiplier and the business cycle.
(iii)  Identify the tools of monetary and fiscal policies, understand their effect on the economy and appreciate the significant role of the Central Bank.
(iv)  Explain the importance of the balance of payments, international trade and how the value of foreign exchange is determined.