This course offers theoretical building blocks of modern macroeconomics. To this end, the so-called (neo-) classical approach to macroeconomics is followed. The approach considers the decision-making of economic agents (individuals, firms, and the government) in a free market economy. Since some concepts necessary to understand the workings of the economy require using advanced mathematical tools, students are encouraged to refresh their memory on calculus.

The course begins by introducing students to the subject of macroeconomics and to national income accounting. Next, one period (static) partial and general equilibrium macroeconomic modeling is developed through graphical analysis and mathematical modeling. Third, two-period partial and general equilibrium macroeconomic modeling approaches are taught by using graphical and mathematical tools. Finally, multi-period general equilibrium modeling and policy analyses are studied. This course also covers market solution and social planner’s solution to macroeconomic modeling.