Algengar spurningar

Þjóð2HK05 – Macro Economics

The aim of the course is for students to understand better the operation of the national economy and the dynamic forces of economic development. Internal relationships in the economic system are explained, e.g. by explaining the economic cycle and by studying simple models. Many of the basic concepts of economics are analysed, including the national product and economic growth; savings, investment and the financial system; unemployment, which includes natural unemployment. The definition and role of money in the economy is discussed, as well as what the role of the Central Bank is. The importance of money supply is explained, and what are possible causes and effects of inflation. Other topics that are studied include; the growth of the money supply; the economics of open economies; short-run economic fluctuations; fiscal and monetary policies used to stimulate economic growth and stability. In addition to discussing the market system and some of its basic characteristics, externality theory and market failure are touched upon, with a focus on the environmental problems created by manufacture and consumption in industrialized societies.