Macroeconomics (ECON 202)

2021 Fall
Faculty of Arts and Social Sciences
Economics(ECON)
3
6.00 / 6.00 ECTS (for students admitted in the 2013-14 Academic Year or following years)
İnci Gümüş incigumus@sabanciuniv.edu, Riccardo Franceschin riccardo.franceschin@sabanciuniv.edu,
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English
Undergraduate
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CONTENT

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.

OBJECTIVE

In macroeconomics we study the aggregate performance of the economy. We are concerned about
explaining the behavior of economic variables such as national output and income, investment and
saving, consumption, unemployment, inflation and interest rates, etc.
The approach taken in this course is to analyze macroeconomic problems using models where
the economy is populated by rational individuals whose behavior is directed by the utility maximization
motive. We will also compare the outcomes of these model economies with the empirical
observations.

LEARNING OUTCOME

Upon completion of this course, students should be able to:

1. IDENTIFY STYLIZED ELEMENTARY/FUNDAMENTAL CAUSE-EFFECT RELATIONS SHAPING REAL-LIFE MACROECONOMIC EVENTS/POLICIES
2. DESCRIBE MACROECONOMIC CONCEPTS AND VARIABLES (some international aspects included)
3. DESCRIBE THE BASIC TRADEOFFS INVOLVED IN MONETARY AND FISCAL POLICY FORMULATION (in the short term and the long term).
4. DESCRIBE THE MECHANICS OF THE BASIC GROWTH MODELS PRESENTED IN CLASS, AND VERIFY WHETHER THESE MODELS CONFORM WITH SPECIFIC GROWTH OUTCOMES OR TRENDS

RECOMENDED or REQUIRED READINGS

Textbook

Andrew B. Abel, Ben S. Bernanke, and Dean Croushore, Macroeconomics, 6th edition, Pearson Addison Wesley