INTRODUCTION TO ECONOMICS II

Content

Weeks	Topics
1. Weeks	Birth of macroeconomics and its field of interest, Government and macro economy, Fiscal policy, Monetary policy and supply side policies.
2. Weeks	Basic components of macroeconomics, National income accounting, Price changes and GDP, Limitations of GDP usage.
3. Weeks	Consumption and saving, Investments, Government expenditures, Net export, Aggregate expenditure function.
4. Weeks	Macroeconomic equilibrium, Determination of equilibrium income level, Expenditures and income, Leakages and injections, Saving paradox
5. Weeks	Expenditure multiplier, Expenditure multiplier and equilibrium level of income, Algebraic derivation of multiplier, Full employment level of income, Deflationary gap, Inflationary gap.
6. Weeks	Government in the economy, Fiscal policy and level of equilibrium income, Structure of fiscal policy, Fiscal policy and economic stability.
7. Weeks	Midterm Exam
8. Weeks	Functions of money, Types of money, Near (quasi) money, Official money stock definitions, Banking system and banks’ money creation.
9. Weeks	Money supply, money demand, Money market equilibrium, Money and equilibrium level of income, Money and economic activities through direct channel, Central banking and implemention of monetary policy.
10. Weeks	Aggregate demand curve, Aggregate expenditures and aggregate demand, Shifts in aggregate demand curve, Aggregate supply curve, Short-run aggregate supply curve, Shifts in aggregate supply curve in the short-run.
11. Weeks	Determination of equilibrium price level, Changes in equilibrium price level, AD-AS analysis and economıc stabilization policies, Demand-pull inflation, Cost-push inflation, Money supply and inflation.
12. Weeks	The importance and scope of international economics., International trade theory, International trade policy, Foreign exchange rates, Foreign exchange market, Foreign exchange eate systems, Balance of payments.
13. Weeks	Definition and measurement of economic growth, Sources of economic growth and the growth models, Government policies to raise long-run living standards, Economic development.
14. Weeks	Final exam