Basic concepts of accounting and determination of national income. Classical theory of output and employment, determination of national savings, investment and consumption. Theories of economic growth. The balance of payments, exchange rate systems, trade and financial flows; monetary and fiscal policy; labour market adjustment at the macroeconomic level; inflation and anti-inflationary policies.

The aim of the course is to provide an essential, simple, useable body of macroeconomic theory, which will both provide the basis for further study and equip students with a real understanding of the role of economics in business, public and private decision making. The course also intends to identify and describe the important institutions at national and international levels and to explain the workings of fiscal and monetary policy and how each affects the economy. Eventually the aim is to be able to apply the theory to analysis of the real world problem.

On completion of the module, students are expected to be able to apply the economic way of thinking to enable them to understand macroeconomic problems, develop cognitive skills to use simple models that abstract from reality and to understand main macroeconomic policy issues, basic consequences of policies and to form opinions on them.

The course meets for three lecture hours and a discussion session per week (see next page for hours).  Students must attend all classes and discussion sessions.  Students are responsible for all material covered during lectures and all course announcements made during lectures. Most lecture notes will be posted on the SUCourse web site. 

The rules of the class are as follows: Your work on exams is to be entirely your own. Your instructor takes "Academic Honesty" most seriously. Be sure you are familiar with the University Academic Regulations and the Regulations for Student Disciplinary Matters. Cheating, plagiarism, and collusion are serious offenses resulting in an F grade and disciplinary action. For further information on academic honesty please refer to Academic Integrity Handbook.

Andrew B. Abel, Ben S. Bernanke and Dean Croushore
Macroeconomics,
Pearson Addison Wesley.