Course description
This course provides basic understanding of the theoretical foundations of macroeconomics at advanced level. The course uses a consistent approach based on microeconomic foundations and the rationality of economic agents to address several issues in monetary and fiscal policy. It discusses the details of aggregate demand and supply in both closed and open economy cases. Topics to be covered include: aggregate demand and supply, consumption and savings, investment, money demand and supply, budget deficits, labor market, rational expectation, open economy macroeconomics, exogenous and endogenous growth theory, and real business cycle theory.
Course outcomes
Upon the completion of this course, students will be able to:
• Understand the theoretical foundations of macroeconomics at advanced level
• Understand the microeconomic foundations of the monetary and fiscal policies
• Analyze aggregate demand and supply in both closed and open economy cases
• Compute the dynamic macroeconomic and growth models
• Analyze the theoretical and applied macroeconomic models and policy issues
Course contents
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🔽 0 h 44 min | The Small Open/Closed Economy
- The impact of exchange rate on the goods market and market for loanable funds
- Demand side analysis of national income determination
- The small open/closed economy long run equilibrium
- The production process in an open/closed economy
- The demand side analysis of the economy in an open/closed economy
🔽 0 h 50 min | The Solow Growth Model
- The steady state level of capital
- Savings affect output and economic growth
- The Solow growth model
- The golden rule of capital
- The augmented Solow growth model
🔽 0 h 43 min | Short Run Equilibrium
- Equilibrium income in the short run
- Changes in inventories for different levels of actual output
- The government purchase, the tax and other multipliers
- The Investment-Saving (IS) curve and understand IS shifters
- The Liquidity preference-Money supply (LM) curve and understand the LM shifters
🔽 0 h 45 min | The Long Run Equilibrium
- The Aggregate Demand (AD) curve from the IS-LM equilibrium
- The effect of fiscal and monetary policies on the AD
- Derive the AD curve from the quantity theory of money
- The factors determining the long run equilibrium output and price
🔽 0 h 47 min | Theories of Aggregate Supply (AS) and The Philips Curve
- The short run Aggregate Supply (AS) curve and the long run AS curve
- Sticky wage model, imperfect information model and sticky price model
- Inflation and unemployment – Philips curve
This course includes:
3 h 50 min recorded video
Downloadable resources (books and articles)
One year access
Access on mobile and TV
Advanced Level
Certificate of completion