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Macroeconomics focuses on aggregate economic variables like production, consumption, investments, and prices over time. It examines changes in economic activity levels but not their composition, which is studied in microeconomics. The course will cover defining relevant variables, determining production under fixed prices and wages, using the IS-LM framework with monetary elements, investigating open economies with fixed and flexible exchange rates, and analyzing supply/demand models with expectations.
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- Macroeconomics examines economic systems as a whole, focusing on aggregate variables such as total production, consumption, investments, and price levels.
- The course will concentrate on the level and temporal behavior of aggregate economic activity, with particular emphasis on changes in economic activity over time.
- Key periods of high and low inflation are illustrated, highlighting their impact on Italy's economy from 1971 to 2021, including recessions caused by various factors such as oil shocks, the EMS crisis, and global economic downturns like the 2008-2009 recession.
- The course will cover defining relevant variables, determining aggregate production levels under fixed prices and wages, using the IS-LM framework, analyzing open economies with fixed and flexible exchange rates, and investigating the effects of relaxing assumptions about fixed prices and wages through the aggregate supply/demand model and expectations.
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