Macroeconomics

At the end of this learning unit, the student is able to :

• State and explain the main accounting identities in national accounting
• Explain the general architecture of an economy's balance of payments and how international transactions are recorded in it
• Apply the concepts of national accounting and balance of payments in practical exercises
• Explain the determinants of interest rates, price and wage formation and price competitiveness.
• Explain the determinants of the components of aggregate demand and aggregate supply.
• Use graphical and algebraic versions of complete short- and medium-term macroeconomic models (IS-MP model and the aggregate supply aggregate demand model) in a closed or open economy: this means being able to
  • explain the assumptions of these models and their roles
  • identify, discuss and compare the results put forward by these models according to the assumptions made
  • use them to explain the determinants of overall economic activity, the general price level, employment (unemployment) and other related variables
  • use them to study the consequences of macroeconomic shocks or policies
  • use them to discuss topical issues and the appropriateness of macroeconomic policies in the current context