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2017/2018  BA-BSEMO1011U  Macroeconomics

English Title

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in Service Management
Course coordinator
  • Svend Erik Hougaard Jensen - Department of Economics (ECON)
Main academic disciplines
  • Economics
Last updated on 31-08-2017

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: Course aim: The purpose of the course is to give students an understanding of (i) movements in the economy over the business cycle, (ii) macroeconomic stabilisation policy (monetary and fiscal) in closed and open economies, and (iii) basic aspects of financial markets and expectations.
  • Explain basic macroeconomic terminology (e.g. "growth", "recession", "natural unemployment", "trade balance deficit" etc.) in a comprehensive way
  • Describe how real GDP is determined in the short and medium run.
  • Describe the main determinants of other important macroeconomic variables such as inflation, unemployment, real wage, interest rate, exchange rate etc.
  • Perform simple algebraic calculations related to developments in the main macroeconomic variables
  • Describe and explain the assumptions and relations of the main macroeconomic models (e.g. the IS/LM model, the AD/AS model, etc.).
  • Illustrate diagrammatically these models, perform policy experiments (like increasing government spending 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 (national income, interest rate, consumption, investment etc.)
Course prerequisites
English language skills equal to B2 level (CEFR) and math skill equal to Danish level B are recommended.
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 2 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring
Aids Limited aids, see the list below:
The student is allowed to bring
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Language dictionaries in paper format
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure

This course offers a general introduction to macroeconomics. We ask questions such as, ‘What determines production, unemployment and inflation in the short and medium run?’ To answer this, we develop an analytical framework based on equilibrium conditions in three markets: the goods market, the financial market and the labour market. This framework is also used to analyze questions like, ‘What is the scope for a government to stabilise the economy using fiscal and monetary policy?’ Moreover, issues related to the open economy are addressed, such as capital mobility, exchange rates, balance of payments etc.

The following issues are addressed in the course:
• Demand for goods
• Demand for money
• Labour market
• Inflation and unemployment
• Fiscal and monetary policy
• The open economy
• Financial markets and expectations

Teaching methods
Lectures & workshops
Feedback during the teaching period
Office hours. More information will be available by the start of the semester.
Student workload
Classes 30 hours
Workshop/ Excercises 15 hours
Preparation for class(including exam) 183 hours
Exam 2 hours
Expected literature
  • Andersen, T.M., J. Bentzen, S. Hougaard Jensen, V. Smith and N. Westergaard-Nielsen (2017), The Danish Economy in a Global Context,  DJØF Forlag


  • Blanchard, O. (2017), Macroeconomics, Pearson.

Please note, minor changes may occur. The teacher will upload the final reading list to LEARN two weeks before the course starts.

Last updated on 31-08-2017