COURSE OUTLINE 1. IS-LM Analysis Derivations of the IS and LM functions: IS-LM and aggregate demand, Shifts in the AD curve. 2. GDP and Price Level in Short Run and Long Run Aggrégate demand and aggregate supply; Multiplier Analysis with AD curve and changes in price levels, Aggregate supply in the SR and LR. 3. Inflation and Unemployment Concept of inflation; Determinants of inflation; Relationship between inflation and unemployment: Phillips curve in short run and long run. 4. Balance of Payments and Exchange Rate Balance of Payments: Current account and capital account; Market for foreign exchange; Determination of exchange rate