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2021/2022  BA-BHAAI1022U  Principles of Macroeconomics

English Title
Principles of Macroeconomics

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 100
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Annaïg Morin - Department of Economics (ECON)
For academic questions related to the course, please contact course responsible Annaïg Morin (amo.eco@cbs.dk)
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 01/12/2021

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Explain basic macroeconomic terminology in a comprehensive way.
  • Describe and explain the assumptions and mechanisms of the main macroeconomic models (e.g. the IS-LM model, the IS-LM-PC model, the Solow growth model, etc.). Illustrate these models graphically and solve them algebraically.
  • Describe how output is determined in the short run, the medium run, and the long run. Explain how output is affected by shocks.
  • Describe the main determinants of other important macroeconomic variables such as inflation, unemployment, real wage, interest rate, the exchange rate, etc. Explain how these macroeconomic variables are affected by shocks.
  • Perform policy experiments (e.g., changes in government spendings or changes in money supply). Interpret the mechanisms verbally and graphically, and solve algebraically.
Course prerequisites
Principles of Macroeconomics:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Summer, The 15-pages home assignment from 28 June. Students need to upload their exam paper no later than 15 July, 12:00, to the Digital Exam Platform.

Retake exam: a 72-hour 10-pages home assignment in the period of 26-29 September 2022.

3rd attempt (2nd retake) exam: a 72-hour 10-pages home assignment in the period of 21-24 November 2022.
Make-up exam/re-exam
Same examination form as the ordinary exam
Retake exam: a 72-hour 10-pages home assignment in the period of 26-29 September 2022 via the Digital Exam Platform.

3rd attempt (2nd retake) exam: a 72-hour 10-pages home assignment in the period of 21-24 November 2022 via the Digital Exam Platform.
Course content, structure and pedagogical approach
Course content:
The aim of this course is to provide students with an introduction to macroeconomics. The course focuses on the behavior of the economy in the short-run, middle-run, and long-run, specifically looking at the goods market, the financial market and the labor market. The course is designed to help students understand how these markets operate, how they interact with each other, and how they are impacted by shocks and macroeconomic policies. The key mechanisms will first be explained in a context of closed economy and the analysis will then be extended to include trade and financial openness.

Why do economies expand sometimes, raising employment and living standards, and shrinking at other times? What is a recession? What happened in 2008–09 when the world economy was hit by the worst recession since the Great Depression of the 1930s? How did government policy respond to the crisis and was this response effective?


More generally, which shocks affect macroeconomic activity? How do these shocks affect output, employment, investment, or consumption? Can government policies make economies grow or stop them from shrinking? Why do we have inflation? Is inflation a bad thing? Is there anything we can do to reduce inflation? Why do we have unemployment? Do policies to reduce unemployment work? Why do countries borrow from abroad? How are exchange rates determined and why are they so volatile? What drives economic growth in the long run? What explains the large differences in economic performance across different countries at different times?


These are some of the central questions that fascinate macroeconomists. If you are curious about how macroeconomists look at the world around them, how they model it, and how this helps answering the questions you just read, then this is the course for you. 



The course will mainly consist of general lectures that will present and explain
macroeconomic concepts and models. Each mechanism presented in class will be embodied in a simple analytical framework to facilitate understanding of the underlying logic. Moreover, graphs will be used extensively to build intuition.

Description of the teaching methods
The course will be taught in person.
Feedback during the teaching period
In-class problem solving activities, case studies, and polling sessions will take place regularly during the lectures.
Student workload
Preliminary assignment 20 hours
Classroom attendance 38 hours
Preparation 121 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Short 3 weeks course that cannot be combined with any other course.


Preliminary Assignment: A generic test/assignment will be developed concerning “Nordic Nine”. It will be uploaded on Canvas at the end of May. Students are expected to access this assignment before classes begin. The assignment will not be reviewed in classes.


Course and exam timetable is/will be available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams


We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams in start March.




Expected literature

Mandatory readings:

Blanchard O.,  Macroeconomics  (8th Edition, Global Edition), 



Last updated on 01/12/2021