Introduction to Economic Theory
Students are introduced to the basic concepts and tools of microeconomic and macroeconomic analysis. 40% of the curriculum refers to microeconomics and 60% to macroeconomic analysis.
Specifically, in microeconomic analysis, the following topics will be covered:
- Basic economic concepts. Demand and supply of goods. The market system and the formation of prices. Elasticity of demand and supply.
- Consumer choices and the theory of demand for goods. Producer choices and bid decisions.
- Theory of production, cost and supply of goods in the short and long term. Forms of market and social well-being. Perfect competition, monopoly, oligopoly and monopoly competition.
- Competition, coordination and balance. The market mechanism and the logic of regulatory intervention by the state. Market imperfections and failures.
In macroeconomic analysis the following thematic sections are covered:
- The revenue stream and the system of national accounts categories. Product and total demand. Determination of income and total employment.
- Fiscal policy and multipliers.
- Money, banks and monetary policy.
- Inflation, unemployment and economic fluctuations.
- International trade, international economy and economic policy. Exchange rates, balance of payments and competitiveness. Economic development and growth.
- Stabilization policy (fiscal and monetary). Total supply, total demand and the concept of macroeconomic equilibrium. Determination of prices and wages and adaptation to short-term disorders (IS-LM model) and long-term (MDS-AS model).
- Economic dimensions of European integration. The Single Market. Economic and Monetary Union. European Central Bank, monetary policy framework. The effectiveness of monetary and fiscal policy in a single currency area.
- Financial crisis in Greece and the Eurozone. Balance of government budget, primary result and sustainability of public debt.