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2023/2024  BA-BBLCO1243U  Macroeconomics

English Title

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
Level Bachelor
Duration One Semester
Start time of the course Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc and MSc in Business, Language and Culture, BSc
Course coordinator
  • Dario Pozzoli - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Blended learning
Last updated on 30-11-2023

Relevant links

Learning objectives
  • Explain basic macroeconomic terminology (e.g. “GDP”, "growth", "inflation” etc.) in a comprehensive way.
  • Describe the links between economic activity, monetary policy, trade and climate change.
  • Describe and explain the effects of fiscal and monetary policy within the main macroeconomic models (e.g. the IS/LM model, etc.).
  • Describe and explain the assumptions and mechanisms of the main macroeconomic models (e.g. the IS-LM model, etc.). Illustrate these models graphically and solve them algebraically.
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Summer
Aids Limited aids, see the list below:
The student is allowed to bring
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The course in Macroeconomics develops the knowledge of main macroeconomic indicators (such as GDP, monetary policy and foreign direct investments) in the wide context of sustainability and green transitions. The ability to put the macroeconomic theory in relation to the broader phenomenon of climate change is highlighted in the learning objective: “Describe the links between economic activity, monetary policy, trade and climate change.” By connecting the concept of economic activity to the ecological ceiling, the students recognize the humanity’s challenge of achieving the desired goal of a sustainable economic growth given the scarse resources of our planet. The course also offers insights on ways policy makers, entrepreneurs and economic actors in general can overcome this challenge. A good example of this type of actions is a green monetary policy that makes it more expensive for polluting entrepreneurs to borrow money and to finance their investments compared to greener entrepreneurs and businesses.

Another important objective of this course is to endow the students with the skills of connecting the theory to actual macroeconomic indicators and of processing the macroeconomic data in a statistical package widely used in International Organizations (such as the World Bank, the OECD and the International Monetary Funds) and Central Banks (such as the FED). The hands on approach to the most important macroeconomic concepts allows the students to be critical of the theory studied in class and be mindful of the intrinsic ambiguity revolving around the most important macroeconomic indicators. As an example, when the students calculate GDP with official data and rigourous methods, they can reflect on whether this macroeconomic indicator is the only good proxy for measuring a country’s welfare and welbeing. This section of the course also allows the students apply some of the statistical and quantitative concepts learned in the course Quantitative Business Research to macroeconomic data. The learning objective that best describes this skill is: i) Explain basic macroeconomic terminology (e.g. “GDP”, "growth", "inflation” etc.) in a comprehensive way; ii) Calculate macroeconomic indicators (such as GDP, growth and consumption) in Stata.


This course also promotes theoretical ideals and objectives of economic efficiency (such as the concept of economic growth that is stimulated through an expansionary monetary policy and competition in the private markets through profit maximization) that go hand in hand with goals of solidarity (such as income equality that is achieved through the fiscal policy, such as income transfers from the public sector). The IS-LM model is an ideal framework to study how a policy maker can trade off economic efficiency and solidarity. These two learning objectives refer to a framework that can help overcome this important ethical dilemma:i) Describe and explain the effects of fiscal and monetary policy within the main macroeconomic models (e.g. the IS/LM model, etc.). ii) Describe and explain the assumptions and mechanisms of the main macroeconomic models (e.g. the IS-LM model, etc.). Illustrate these models graphically and solve them algebraically.

Macroeconomics is also the right venue for boosting critical thinking but in a collaborative setting. On the one hand, the course offers the possibility of developing critical thinking skills by validating the theory studied in class through the discussion of real life examples drawn by newspapers articles and timely cases and debates. What does it mean for example that the Danish Central Bank set a negative interest rate when in fact the standard canonical model described in class only contemplates non negative interest rates? On the other hand, the course also encourages group work assignments (called one-drive competitions, see more details in the course description) throughout the semester that allow the students to be good team player when collaborating with their fellow students.


The main goal of Macroeconomics is to prepare the students to think like a real economist when confronted with macroeconomic data and context. This means that the students will be able to relearn new macroeconomic concepts if new data and events are available. For example, how does the spread of new and dangerous virus affect economic growth, inflation and trade? Or how does a new artificial intelligence technology affect unemployment? These specific and unexpected changes to the economy are not explicitly dealt with in the syllabus. However the general skills developed in the course allow the students to interpret these new phenomenon under the lens of the economic concepts studied in class and re-invent and re-learn their knowledge accordingly.


The part of the course that deals with the case of an open economy emphasizes the fact that local businesses and entrepreneurs (such as successful Danish exporting companies and multinational firms) can create value for the domestic labor and product markets by establishing connections to the global markets through the activities of exporting and importing goods and services and investing abroad/receiving investments from abroad.

Description of the teaching methods
Lectures and tutorial exercises. Lectures focus on presenting theory and insights. Tutorials focus on applying these to concrete exercises.
Feedback during the teaching period
Student feedback will occur regularly throughout the course, e.g. via exercise classes (TA sessions), office hours and in-class problem solving (such as in class quiz competitions). During the semester, the students will have also the chance to do some extra assignments alone or in groups of 2-4 students in class (called one-drive competitions) in order to receive individualized feedback from the main coordinator (Dario Pozzoli). The assignments (5 in total) will be available in canvas (under the section one-drive assignments) at the end of each main topic as described by the syllabus uploaded on canvas. The lecturer will also strive to be readily available for a one-to-one dialogue in both lecture breaks and following each lecture session.
Student workload
Lectures 24 hours
TA sessions 12 hours
Preparation before lectures 80 hours
Exam preparation 90 hours
Total 206 hours
Expected literature

Blanchard, Giavazzi & Amighini  (2021) Macroeconomics: A European Perspective, Fourth Edition.

"Decoupling of emissions and incomes: It’s happening", Gail Cohen, Prakash Lounganihttps:/​/​voxeu.org/​article/​decoupling-emissions-and-incomes-it-s-happening

"Greening Monetary Policy" Dirk Schoenmaker, https:/​/​voxeu.org/​article/​greening-monetary-policy

"Good for the environment, good for business: Foreign acquisitions and energy intensity"

Arlan Brucal, Beata Javorcik, Inessa Love, https:/​/​voxeu.org/​article/​foreign-acquisitions-and-energy-intensity

Last updated on 30-11-2023