Macroeconomics

Knowledge in Macroeconomics, which is the study of the economy as a whole, is a useful tool for future business managers, but for other individuals as well, because it equips them with knowledge about the economic environment in which they will operate or are already operating. They will learn that the standard of living of a country depends on its ability to produce goods and services, and will learn how to calculate the output in an economy and will understand why economic growth is a major goal for any economy. They will understand how prices change over time and why – including that steadily increasing prices are normal and most often falling prices (“bad” deflation) are a sign of an ill economy. Students will learn about the purchasing power of money and how it is eroded when the Central Bank prints too much money. With reference to this, they will learn how to calculate the rate of inflation and how the value of money changes over time. Students will also learn about the major macroeconomic disequilibria, inflation and unemployment, and that, again, there is a short-run trade-off between the two. Discussions will be held in the area of labour market regulation and students will understand the benefits but also the risks of a minimum wage. Also, students will learn that the economic activity is not linear, and that the economy fluctuates – they will study the role of monetary policies conducted by the Central Bank and of fiscal policies conducted by the government to alleviate some of the negative effects of said fluctuations. Last but not least, students will understand that following certain macroeconomic policies, there will be winners and losers.