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Macroeconomic Analysis

Course Description: This course reviews macroeconomic models, particularly the simple Keynesian model, and studies sectoral demand. It covers the main components of aggregate demand and their determinants in economics, such as consumption and its various hypotheses, and investment and its different theories. This is achieved through studying the origins of the monetary side and different theories of money demand to arrive at the IS-LM model. The course also addresses fiscal and monetary policies within these types of models, the impact of their interaction, and their relationship to economic disequilibrium, as well as developing the aggregate demand-aggregate supply model. Then, the course reviews and derives the complete form of the AD/AS model, addressing the feasibility and effectiveness of different policies in influencing the level of output in the short and long term. Finally, the course addresses macroeconomic policy issues in an open economy under both fixed and flexible exchange rate systems.
Credit hours: 3
Prerequisites: ECON120
Objectives of the course :

The student should be able to:
1- Identification of macroeconomic analysis tools and models.
2- Determine the equilibrium levels of output and equilibrium in the money and real markets.
3. Track the consequences of following different policies on key economic variables using the AD/AS model.
4 – Develop fiscal and monetary policy scenarios necessary to achieve economic balance.
Distinguishing between fiscal and monetary policies and their differences depending on exchange rate regimes.

Course outputs :

1.1 Identifies basic methods and concepts in macroeconomic analysis. .
Explains and analyzes macroeconomic theories and their precise application in economic fields.
1.3 Applies macroeconomic analysis tools to solve contemporary economic problems. .
2.1 Communicates effectively in writing in fields related to macroeconomic analysis by preparing an individual report.
2.2 Acquires the skill of critical thinking and solving macroeconomic problems under study, and proposes alternative solutions using appropriate microeconomic analysis tools and models in scientific and creative ways.

Additional information:
  • Last updated: 2026-04-23

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