Introductory Macroeconomics

An introduction to macroeconomic theory and policy. Topics will include economic aggregates such as production and employment, the general level of prices and inflation, the exchange rate, interest rates, monetary and fiscal policies, the balance of payments and economic growth. Analysis is particularly directed to current macroeconomic problems and policy issues.

• 1Explain the importance of the circular flow of income to macroeconomics;
• 2Interpret the meaning and measurement of macroeconomic aggregates such as Gross Domestic Product;
• 3Explain and use the Keynesian model of national income determination;
• 4Describe the roles of money and the financial system in the macroeconomy;
• 5Critically analyse macroeconomic policies appropriate to the achievement of the macroeconomic objectives;
• 6Explain and apply the aggregate demand/aggregate supply model;
• 7Explain the key features of the neoclassical model of growth; and
• 8Analyse the factors influencing the balance of payments and the exchange rate.