This is the second part of the Macroeconomics course. At the intermediate level, it presents and analyzes questions related to aggregate demand and supply and short-run fluctuations. Its core is the (simplified) IS-LM model. Within the frames of this model, this course analyzes the possible drivers of short-run fluctuations. It suggests the policy instruments and regimes that can mitigate those fluctuations. The course also provides examples that map the theoretical arguments presented in the class to the current processes in the real world.

Upon successful completion of this course, students will be able to better understand the short-run functioning of economic systems and discern the possibilities and limits of economic theories. Students will also be able to employ basic quantitative techniques to model aggregate economic phenomena.

The students will learn the basic concepts in macroeconomics in order to be able to understand and be able to discuss topics such as the evolution of inflation, the determinants of economic growth or external imbalances.