Macroeconomic Theory and Policy 5311

Prerequisites

5500 Mathematics

Course Objectives

The student will achieve insight into how a country’s economic performance and development are assessed. Students will gain understanding of the reasons for and the effects of fluctuations in the market in the short run, such as how changes in demand in one part of the economy may have broader economic consequences, which may also effect the general level of a country’s economic activity. A government’s money and financial policy is important in this context, and as well as issues relating to how policy affects the various exchange regimes. The goal is to enhance students’ ability to interpret media discussions concerning the country’s general economic development and the significance for individual companies. Analytical tools will also include socio-economic macro-models.

Course Description

The course will focus on the following topics:

 Macroeconomic aims and instruments

 National accounting

 The labour market and unemployment categories

 Demand and supply at the macro level

 Multiplier model with variables: Total activity level, macro private consumption, macro private real investment, public expenditure and taxes, foreign trade, currency markets

 Macroeconomic stabilisation policy

Learning Methods

3-4 hours of lectures during the autumn semester. 3 course assignments (optional), which will be assessed, graded and reviewed by the course teacher.

Assessment Methods

Written examination, 4 hours.

Pensum