• describe, interpret and apply the most important macroeconomic concepts
• analyse and interpret important current and historical macroeconomic developments using basic macroeconomic theories
• think in terms of abstract models in order to analyse the effects of macroeconomic policies and shocks, and understand how different markets interact with each other
• distinguish long-run effects from short-run effects, for a closed and an open economy

Recommended perequisites: Principles Microeconomics, Mathematics

The first part of the course covers the determinants and measurement of long-run output, inflation and unemployment. Basic mathematical and graphical instruments are used for macroeconomic analyis and conceptual differences between micro and macroeconomics are discussed. Concluding this first part, the students learn some aspects of international economics, such as how exchange rates, capital flows between countries, and the trade balance are affected by policies and shocks.

In the second part of the course the emphasis is on the business cycle: short-run deviations of output, employment, interest rate and price level around the long-run trend.

All parts discuss to what extent governments and central banks can influence the economy using fiscal, monetary and trade policy, and how economic shocks affect the economy.