Course Details

1. Demonstrate the ability to understand the key concepts of macroeconomics, the objectives and instruments.
2. Explain the role of economic activity: Gross Domestic Product, real and nominal GDP, price indexes and inflation.
3. Describe consumption, income, and saving; consumption and saving functions, marginal propensity to consume and save.
4. Evaluate and apply business fluctuations and the foundations of aggregate demand and aggregate demand curve.
5. Apply the basic multiplier model.
6. Demonstrate the ability to understand different investment appraisal techniques.
7. Appraise using those techniques different projects.
8. Evaluate the viability of the projects according to the source of capital.

Analysis of the key concepts of macroeconomics; objectives and instruments of Aggregate Supply and Aggregate Demand.

Applications of how the Aggregate Demand and Supply curves work in macroeconomics.

Measurement of economic activity (Gross Domestic Product) using the product and earnings approaches; avoiding double counting.

The procedures to calculate Nominal and Real GDP using the product approach.  GDP deflator placed in work.

Price Indexes and Inflation, analysis of consumption, Income, and saving.

Consumption and saving functions, calculation of marginal propensity to consume and marginal propensity to save.

National consumption behavior and analysis of the determinants of Investment and Saving.

Business fluctuations and discussion of the features of the business cycle, business cycle theories, and forecasting.

Foundations of aggregate demand and analysis of the slope of it.

Analysis of the relative importance of the factors influencing aggregate demand and the aggregate demand curve.

The basic multiplier model and output determination through consumption, investment, and government expenditure.

Fiscal policy and how it affects the GDP in recession.

Increases in government expenditures in a full employment situation and their effect on the economy.

Financial objectives and long term planning

Investment appraisal techniques.

The costs of different sources of finance.

• Violaris Ioannis, Economics a bilingual approach, Epiphaniou editins, 2008.

• Samuelson & Nordhaus, Economics, McGraw Hill, 19th edition, 2008