| 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 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. |
| Examination |
|
Macroeconomics:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam |
| Individual or group exam |
Individual |
|
Exam Guidelines:
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 |
| Assignment type |
Written assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
Internal examiner and external examiner |
| Exam period |
Spring Term |
| Aids allowed to bring
to the exam |
Limited aids, see the list below and the exam
plan/guidelines for further information:
- Allowed calculators
- Allowed dictionaries
|
| 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 |
| Student workload |
| Classes |
30 hours |
| Workshop/ Excercises |
10 hours |
| Preparation for class(including exam) |
181 hours |
| Exam |
4 hours |
|
| Expected literature |
|
Blanchard, O., and D. Johnson, Macroeconomics, Pearson, N.J.,
Latest version (BJ).
BJ, ch. 1 and 2: Introduction to macroeconomics
BJ, ch. 3: The goods market
BJ, ch. 4: Financial markets
BJ, ch. 5: The IS-LM model
BJ, ch. 6: The labor market
BJ, ch. 7: The AS-AD model
BJ, ch. 8: Unemployment
BJ, ch. 9: The crisis
BJ, ch. 18-21: The open economy
BJ, ch. 15: Financial markets and expectations
Please note, minor changes may occur. The teacher will
upload the final reading list to LEARN two weeks before the course
starts.
|
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