Trimester 3

The Module of Macroeconomics II offers intermediate-level skills (Theory and Practice) in the field of Macroeconomics.

• First, it develops the Mundell-Fleming open-economy IS-LM model for a small open economy with perfect capital mobility.  The model is used to analyze the effects of fiscal, monetary, and trade policy under floating and flexible exchange rates.  
• Then, the chapter explores interest rate differentials, or risk premia that arise due to country risk or expected changes in exchange rates. The Mundell-Fleming model is used to analyze the effects of a change in the risk premium. The 1994-95 Mexican Peso Crisis is an important real-world example of this.
• The chapter summarizes the debate over fixed vs. floating exchange rates. 
• Following that discussion, the Mundell-Fleming model is used to derive the aggregate demand curve for a small open economy. 
• And finally, the chapter discusses how the results it derives would be different in a large open economy.
• To reinforce this material, I strongly recommend you to read the provided text book.

The main topics are: History of Operations Research,  Stages of Development of Operations Research,  Relationship Between Manager and OR Specialist, OR Tools and Techniques and Applications of Operations Research.

After Studying this lesson, you should be able

to: Understand the meaning, purpose, and tools of Operations Research',  Describe the history of Operations Research ,Describe the Stages of O.R and  Explain the Applications of Operations Research.