In general, macroeconomics studies aggregate economic variables, such as production for the economy as a whole (aggregate output) or the average price of all goods (the aggregate price level). Why should you, as a student the twenty-first century, embark on the study of macroeconomics? There are three reasons. The first reason to study macroeconomics is to better understand the whole world in which we live - from the transformation of Eastern Europe, to high unemployment in Western Europe, to fast growth or crises in Asia, to the budget battles in the United States. The second reason is to make us become more astute participants in the whole economy, for instance, how to manage the financial matters for a country. The third reason is to gain a better understanding of the potential and limits of economic policies. Thus, the principles of macroeconomics can be applied in many real life situations. Whether the future finds you reading the newspaper, or running a business, you will be glad that you studied macroeconomics.
This course contains the following topics: Introduction A Tour of the World; The Basics of Markets (the Goods, Financial and Labor Markets); Expectations; Open Economy; The Supply-Side Economics; Pathologies - High Unemployment and High Inflation; The Long Run; Change and Transition; Policies; and The Story of Macroeconomics.