This is a two-term course which teaches the structure of the economy in terms of aggregate economic variables. We shall begin with Keynesian Aggregate Supply, General Price Level Adjustment and Long Term Equilibrium. In spring semester we will explain the assumptions underlying Keynesian, Monetarist, New Classical and New Keynesian Macroeconomic Theories. We will also analyze the effects of economic policies, especially the effects of monetary policy on real economic variables like employment and Current National Income according to these theories. We will also explain the relation between unemployment and inflation rates by using Phillips Curve. Then we will analyze the relation between inflation rate and Current National Income by using Dynamic Aggregate Supply and Dynamic Aggregate Demand Framework. We will also analyze the effect of political decisions on economic policies and outcomes. Our last subject will be macroeconomics for open economies.
Inflationar Gap, Deflationary Gap, General Price Level Adjustment and long run equilibrium, differences among the Basic Assumtions of Keynesian, Monetarist, New Classical and New Keynesian Theories, Aggregate Supply and Aggregate Demand Framework, Relevancy of active economic policies according to different theories. Structure of Labour Market and bargaining process , Types, determinants and concequences of unemployment and inflation, The relation between unemployment and inflation rates in the short-run and long-run: Phillips Curve Framework, The relation between Current National Income and inflation rate: Dynamic Aggregate Supply and Dynamic Aggregate Demand Framework, Political Business Cycle Models: Effect of political decisions on business cycles. Open Economy Macroeconomics: Balance of Payments, Current Account, and Capital Account