Macroeconomics

Course ID
SOB 207
Department
Business Administration
Semester
4th Semester
Credit
2.00

The subject macroeconomic issues. Total demand and Keynesian model. Liquidity preference theories. IS-LM model, the effects of short-term fiscal and monetary policies. 

Determination of employment and real wages in the labor market. The aggregate supply models, the effects of fiscal and monetary policies on medium and long term yields. Keynesian and Classical economics. Short and long term Phillips curve. Stagflation (inflation in recession). The rate of sacrifice is the theory of quantity of money. Purchasing power parity, interest parity conditions, outward openness and Keynesian model outward openness, money markets and IS-LM model. Policy influences. Fixed and flexible exchange rate regimes, policy effects. Financial rules: Equivalent budget, golden rule, stability and growth pact, inflation targeting, Central Bank independence.

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