Economic Analysis II

Macroeconomics is the field of economics that studies the behavior of the economy as a whole. The module begins with the presentation of the macroeconomic fundamentals and national accounts. The analysisdistinguishesbetweennominal andreal GDP, and shows how tocalculate theconsumer price index. Students are introduced to the theory ofconsumption,savings andinvestment. The multipliersof government spending, taxes andinvestment are determined. Subsequently, there isan introduction to themonetary system. The course places particular emphasis on the determination of equilibrium both in the goods and the money markets. Finally, theconcepts ofunemploymentand inflation are presented.