Learning Objectives

After having followed the course the student should be able to:

Explain basic macroeconomic terminology (e.g. "growth", "recession", "natural unemployment", "hyper inflation", "trade balance deficit" etc.) in a comprehensive way.

Describe how real GDP is determined in the short run, the long run and the very long run.

Describe the main determinants of other important macroeconomic variables such as inflation, unemployment, real wage, interest rate, exchange rate etc.

Perform simple algebraically calculations related to developments in the main macroeconomic variables.

Describe and explain the assumptions and relations of the main macroeconomic models (e.g. the classical model for the economy in the long run, the IS/LM model, the Solow growth model, the AD/AS model, etc.).

Illustrate diagrammatically these models, perform policy experiments (like increasing Government Purchases or changing the Money Supply) and interpret verbally what happens when moving from one equilibrium to another.

Solve algebraically simple macroeconomic models in order to determine the value of the variables in equilibrium and changes in the variables (national income, interest rate, consumption, investment, etc.).

Examination

Macroeconomics


Marking Scale

7step scale

Censorship

Internal examiners

Exam Period

Spring Term and Spring Term

4 Hour written exam, closed book 

Examination


Prerequisites for Attending the Exam


Course Content

The course is an introduction to Macroeconomics, the branch of economics that studies the behaviour of the economy as a whole. Key concepts are total production and income, (un)employment, inflation, the rate of interest, the trade balance, exchange rates, and the like. The aim is to be able to explain the determinants of economic developments, both in the long run and in the short run, and to explore the scope that may exist for Government and Central Bank policy to keep the economy on a stable course.
The course will combine lectures and exercise classes. During the lectures, the main theoretical points of the textbook will be highlighted and related to reallife macroeconomics and economic policy. The best way to prepare for the lectures is to study the relevant chapters of the textbook in advance and solve the "Questions for review" accompanying each chapter. During the exercise classes we will solve a selection of the "Problems and Applications" of the textbook, which you will also be asked to solve for yourself in advance. 
Teaching Methods

Lectures and Exercises.

Literature

“Macroeconomics”, Mankiw, Gregory and Mark Taylor. European Edition, Worth publishers. Please note, minor changes may occur. The teacher will uploade the final reading list to sitescape/learn two weeks before the course starts. 