Macroeconomic Analysis

Learning Results

This subject aims at developing the student’s skills regarding mainly the understanding of the main macroeconomic aggregates and the way they interact. Other aims:
• Debate the current macro-economic issues;

• Understand the role of economic policies;

• Compute and interpret macro-economic aggregates;

• Understand macro-economic models;

• Interpret multipliers;

• Understand the dynamics of inflation and unemployment;

• Contextualise the Public Sector intervention in the stimulus to competitiveness and economic growth;

• Distinguish economic growth from business cycles.

Program

I – Introduction and general concepts

II – Measuring economic activity

Product as a measure of economic performance

Output gap

Employment and unemployment

Measuring price levels and inflation Inflation rate

Economic impacts of Inflation/deflation

Nominal and real values

National Accounts

Conceptual and theoretical issues

Agents, operations, flows and stocks

Economic circuit

National Accounting Identities

III – Public Sector and Public Finances

Public balance and public deficit

Public debt

IV – Consumption,

Savings and Investment

Private consumption and family savings Investment

V – Multiplier effects

The Simple Keynesian model

Multipliers and fiscal policy

VI – IS/LM Model

Product market and the IS Money market and the LM

Simultaneous equilibrium

Fiscal and monetary policies

VII – Aggregate supply and aggregate demand

Aggregate demand

Aggregate supply

Macroeconomic equilibrium

Aggregate supply and aggregate demand shifts

VIII – Economic growth and business cycles

Internship(s)

NAO

Bibliography

Dornbusch R., Fischer S., Startz R., (1998), “Macroeconomia”, McGraw-Hill, Lisboa, 7ª ed.

Samuelson, P. e Nordhaus, W (2005), “Macroeconomia”, McGraw-Hill, Lisboa, 18ª ed;

Amaral, J. Ferreira, Louçã, F., Caetano, G., Fontainha, E., Ferreira, C., Santos, S.(2007), “Introdução á Macroeconomia”, Escolar Editora, Lisboa, 2ª ed.