The course aims to introduce students to fundamental issues in macroeconomic theory and policy. Upon successful completion of the course, students are expected to:

• Have the ability to identify the main macroeconomic problems of a country and the objectives of the government
• Understand how the economy functions at the macro level, in both the short run and the medium run
• Understand the effects of economic policy on GDP, employment, and the price level
• Understand the effects of exogenous events on the economy, as well as the process of its dynamic adjustment to them
• Be able to use functional relationships, diagrams, and empirical research findings to propose ways of addressing/resolving key macroeconomic issues
• Be able to solve exercises by quantitatively determining the main macroeconomic variables of a country and calculating how these variables change when exogenous events occur or when economic policy changes Top of Form

Macroeconomic objectives, macroeconomic models. Short-run equilibrium in the goods market. Equilibrium in the money market. IS-LM model, multipliers. Effectiveness of fiscal and monetary policy. Short-run effects of exogenous events. Aggregate demand function. The economy in the medium run, changing price level. Labor market, wages, and employment. Imperfections in the labor market (mismatches, tax distortions, labor unions, efficiency wages, long-term labor contracts). Aggregate supply function. General equilibrium, determination of real GDP, price level, and employment. Dynamic adjustment to exogenous events and changes in economic policy. Cases of malfunction of the price mechanism (liquidity trap, interest-inelastic investment demand, nominal/real interest rate). Okun’s Law. Expectations and the Phillips Curve. Risk premiums in money/capital markets. Quantitative easing. Oil prices, employment, and unemployment.

Lectures (4 hours per week) and Tutorials (1 hour per week)

The language of assessment is Greek, and the assessment method consists of a final individual examination through a process of Multiple-Choice Questions, Short-Answer Questions, Essay-type questions and Problem Solving.

Students are given the option of taking an optional midterm/progress test.

The course syllabus, sample analytical questions, laboratory exercise assignments, course assessment criteria, as well as other teaching/learning material are posted on the e-class platform and are accessible to all students.

Use of IT in teaching, and in communication with the students (e-class)