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Macroeconomic Analysis (Advanced)

Course Description: This course provides students with an in-depth understanding of macroeconomic analysis by introducing them to the macroeconomic theories that have become dominant in studying issues of employment, inflation, the balance of payments, economic growth, and economic cycles. The course begins with a mathematical treatment of the traditional IS-LM and AD-AS models to understand the debate among different schools of thought on how a closed economy functions. The new consensus model, also known as the three-equation New Keynesian model, is also discussed to explain the mechanisms of the contemporary macroeconomy. Additionally, the traditional IS-LM model is expanded to include the Balance of Payments (BP) curve to characterize the behavior of an open economy. The course focuses on macroeconomic research findings, with due attention paid to the methodologies used in macroeconomic analysis and research.

Credit hours: 3

Objectives of the course :

Understanding how to develop theoretical models that contribute to explaining the mechanisms of closed and open economies.
2- Solving aggregate models using differential and linear algebra tools, deriving short- and long-run economic equilibria, as well as fiscal and monetary policy multipliers.
3. Comprehending the ongoing debate among different schools of thought—Classical, Keynesian, Neoclassical, New Keynesian, and New Classical—regarding how the economy functions and determines levels of employment, inflation, and output.
Possessing the communication, analytical, and critical thinking skills necessary to understand contemporary theoretical and applied research in macroeconomics and interpret its findings.

Course outputs :

1.0 Knowledge and Understanding
1.1 Definition and explanation of core macroeconomic concepts such as business cycles and economic cycles, market equilibrium, econometric analysis, and others.
1.2 Demonstrate effective written communication skills when analyzing real-world economic problems, while developing an understanding of how to apply concepts and methods in contemporary macroeconomic discussions.
1.3 Using diverse analytical tools and techniques to address macroeconomic problems.
2.0 Skills
2.1 Prepare a logical, relevant, and well-organized report on an economic issue.
2.2 Identifying and analyzing the economic issue and evaluating alternative solutions.
3.0 Values, autonomy and responsibility
3.1 Work effectively in a team, demonstrating initiative and a positive attitude in report preparation.

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Last updated: 2026-04-27