• Basic economic concepts, economic cycle
• Definition and measurement of gross national product (GNP)
• Consumption, investment, saving and government spending
• Equilibrium level of national income
• Fiscal policy and income multiplier
• Definition of money, money multiplier, role of the Central Bank
• Supply and demand of money, definition of interest
• Fiscal and monetary policy
• Business fluctuations
• Definition of unemployment, cause and cost of unemployment
• Cyclical unemployment and natural rate of unemployment
• Inflation: cause, cost and expectations
• Deficit, debt and inflation

The purpose of the course is to analyse and explain basic concepts and topics relating to macroeconomic theory. The course describes and examines various types and categories of macroeconomic issues, for example, the measurement and brief presentation of the income of an economy, the determination of the equilibrium level of income of an economy, monetary supply and demand, and setting of interest rates. In addition, the positive and negative effects of fiscal policy on an economy’s income and, by extension, on individuals, businesses, and society are covered. Finally, the concepts of public deficit, public debt, and inflation are described and analysed.

On successful completion of the course students will be able to:

• understand the definitions and basic concepts relating to macroeconomic theory;
• recognize, formulate and analyse different types and categories of macroeconomic issues;
• understand the positive and negative effects of economic policy on individuals, businesses and society; and
• evaluate contemporary macroeconomic issues at a basic level.