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2012/2013  BA-HAS_MCEC  Macroeconomics

English Title

Course information

Language English
Exam ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Course period Second Quarter
Time Table Please see course schedule at e-Campus
Study board
Study Board for BSc in Service Management
Course coordinator
  • Svend Erik Hougaard Jensen - Department of Economics
Svend E. Hougaard Jensen
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 03-09-2012
Learning objectives
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 economic growth.
  • 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 run, the medium run and the long 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.)
Students not enrolled in BSc in Business Administration & Service Management must document a level in English equal to TOEFL 575, and A level in mathematics equal to Danish level B
Type of test Written Exam
Marking scale 7-step scale
Second examiner External examiner
Exam period Winter Term
Aids Closed Book
Duration 4 Hours
  • The exam takes place on CBS computers
  • Graphs can be written by hand
  • Students may bring simple language dictionaries to the exam
  • Students may bring a non-programmable calculator to the exam
  • Re-examination. Re-take examinations and make-up examinations are subject to the same regulations as the ones noted above
Course content

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. Finally, we briefly discuss issues related to economic growth.

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
• Economic growth

Teaching methods
Lectures & workshops
Student workload
Classes 30 hours
Workshop/ Excercises 10 hours
Preparation for class(including exam) 181 hours
Exam 4 hours
Expected literature

Blanchard, O., Macroeconomics, Pearson, N.J., Latest version.
Blanchard chap. 1 and 2: Introduction to macroeconomics
Blanchard chap. 3: The goods market
Blanchard chap. 4: Financial markets
Blanchard chap. 5: The IS-LM model
Blanchard chap. 6: The labor market
Blanchard chap. 7: The AS-AD model
Blanchard chap. 8: Unemployment
Blanchard chap. 9: Inflation, activity and nominal money growth
Blanchard chap. 18-21: The open economy
Blanchard chap. 10-12: Economic growth

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 03-09-2012