Macroeconomics-I (2024/25, II)

Macroeconomics I (AgEc222) is a three-credit-hour course designed to introduce students to the fundamental principles and concepts of macroeconomics. It is expected to be covered in 48 hours. This course begins by defining macroeconomics and exploring its key elements. Students will then review the historical evolution of macroeconomic thought and examine key controversies within the field, setting the stage for deeper analysis in this course and Macroeconomics II. The course covers essential topics including national income accounting, economic performance and the business cycle, aggregate demand and aggregate supply analysis, macroeconomic problems (unemployment and inflation), and macroeconomic policies (fiscal and monetary policy). Specifically, the course content includes:

  • Introduction: Concepts and definitions of macroeconomics, key elements of macroeconomics, and an overview of macroeconomic schools of thought (Classical and Neo-classical, Keynesian, New Classical, and New Keynesian).
  • National Income Accounting: Definitions of national income accounting, the circular flow diagram, national income account measures, approaches to national income accounting (value added, income, and expenditure approaches), and limitations of GDP as a measure of welfare.
  • Economic Performance and Business Cycle: Definition and concepts of the business cycle, phases of the business cycle, causes and effects of business cycles, and theories of the business cycle (Keynesian, Monetarist, Rational Expectations, Real Business Cycle, and Political Business Cycle).
  • Aggregate Demand and Supply Analysis: Aggregate demand (curve and changes), aggregate supply (short-run and long-run curves and determinants of change), and macroeconomic equilibrium.
  • Macroeconomic Problems: Unemployment (definition, measurement, types, relationship with output, labor market equilibrium, and labor supply and the business cycle) and inflation (concepts, definition, price indexes, causes, and consequences). Also, the relationship between unemployment and inflation rates.
  • Macroeconomic Policies: Monetary policy (tools and impact on aggregate demand) and fiscal policy (changes in government purchases and taxes).