Identify the agents, assets, flows and relevant prices in any aggregate economic system.
Describe the aggregate processes of resource allocation, especially in production mechanisms, income distribution and economic stabilization which result from the functioning of the markets.
Identify the nature, limits and consequences of the flexibility and rigidity of markets – especially of the labour market – on the aggregate behaviour of economies.
Distinguish clearly between the financial, nominal and real behaviours of aggregate economic systems.
Foresee the effects of the current economic policy tools on the behaviour of the main markets and on mechanisms of production and income distribution.
Macroeconomics I represents the students’ first contact with macroeconomic analysis. The subject is made up of two clearly different blocks:
In the first part, basic concepts and objectives are introduced, as well as the questions we aim to offer answers for, and the tools and instruments we use. The principle variables used in Macroeconomics will be studied, which make up the basic elements of the models to be formulated in both Macroeconomics I and Macroeconomics II.
In the second part, the students will start to work with the fundamental tool they will use in this subject matter: macroeconomic models. The objective of the second part is to analyze how a closed economy works from a short-term perspective. Beginning with a study of the markets of goods and money, within an initial perspective of constant prices, we then formulate and analyze the IS-LM model. Afterwards, we will study the behaviour of the productive sector of economy which allows us to explain, within the framework of a closed economy, how prices are determined. This will be done via a model (model OA-DA) in which the supply and demand sides of the economy interact. The role of fiscal and monetary economic policies will be analyzed, focussing on their short-term effects on relevant variables of the economy.