Learning outcomes:

Economics is the science that deals with the "material" side of our lives. Macroeconomics, -unlike microeconomics which deals with the economic decisions of individual agents- focuses its attention on the macro-level of economic activity or otherwise the interaction of economic variable within the economy as a whole. Its goal is to discover the rules governing the operation of the economic system of a entire country.

Aim: The aim of the course is to help the students to develop a basic understanding of macroeconomic issues and problems and to provide them with basic analytical tools to deal with such macroeconomic problems.

Upon successful completion of the course, the student will be able to:

  • Understanding the fallacy of synthesis and learning to differentiate between the micro and macro level and analysis
  • Understanding the economic cycles and macroeconomic identities
  • Using methodologies and techniques to measure the economic activity of the whole economy
  • Identifying the main macroeconomic sectors
  • Identifying the main variable which influences the contribution of the activities of the macroeconomic sectors/ variable and therefore the activity of the whole economy


  • Code :             X12
  • Semester :     1st
  • Effort :              7.5 ECTS
  • Hours :             3 per week
  • Type :                Economics
  • Department : Economics
  • Exams :             Yes

Course Contents:

  • The course is divided into four parts.

    The first Part: Defining and Identifying macroeconomic activities, includes

    • The macroeconomic cycles (without the state, with the state, and the open cycle )
    • The macroeconomic activities and the main macroeconomic sectors
    • The Gross Domestic Product GDP
    • Methods measuring the GDP
    • Variations of GDP
    • Other Macroeconomic Variables

    The second part: The main macroeconomic theories, includes.

    • Basic macroeconomic concepts: macroeconomic goals and macroeconomic policies (public and monetary policy)
      • A simple classical macroeconomic model: From A. Smith to Keynes. A long-term analysis
      • Says Law
      • Loanable Funds Theory
      • Production technology and the Labor Market
      • Quantitative Theory of Money
    • A neo-classical view of Keynes
      • The theory of effective demand
      • The theory of disposable funds
      • Price and loan rigidities and the labor market

    The third part: the neo-classical synthesis of Mr. Hicks, includes

    • The IS curve
    • The LM curve
    • The IS-LM framework
    • The AD-AS framework

    The fourth part: Macroeconomic Policies, includes

    • The Case of Fiscal Policies
    • The Case of Monetary Policies
    • The Phillips Curve

    The synthesis of the different schools in the time: Short Run Intervention and Long Run Equilibrium