AE101203 Macroeconomic theory and policy

Minimum university college entrance requirement

The students should be able to appraise the economic conditions and development of a country. They should further gain an understanding of the causes and effects of short term and long term business cycles, e.g. how changes in demand in some parts of the economy may influence the general level of production in the rest of the economy. The authorities' monetary and fiscal policy is important in this respect, i.e. how policy instruments may work in different exchange rate regimes. An important aim of the course is to make the students able to participate in general discussions regarding economic policy - e.g. as often mediated in the press - and relate this to possible consequences at the company level. Macroeconomic models are the main analythical tools used in this course.

* Macroeconomic objectives and policy instruments.
* National income accounting and the balance of
payment.
* Aggregate demand and supply
* Multipliers
* Macroeconomic stabilisation policy
* Inflation and unemployment
* Supply-side policy

Lectures. Exercises.The learning management system Classfronter will be used to some extent in the exchange of information.

Two homewritten exams in groups of up to three persons, with a duration of three days for each exam. The first exam counts for 30% and the last counts for 70% of the total grade.