2294.20 - Intermediate Macroeconomics 2

Course number
Intermediate Macroeconomics 2
Pass grade in Mathematics B at the upper secondary level. Skills and knowledge from or equivalent to those taught in the courses Principles in Microeconomics and Macroeconomics, and Mathematics 1 is an advantage.
The aim is to provide the students with the skills to use the standard economic theory and models of the economy with emphasis on the short and medium run, on economic shocks and opportunities for policy response, in order to provide basic knowledge about economic theory and methodology.
The emphasis is on economic theory and models of the short run characteristics of the economy. Building on the course in Principles of Macroeconomics students will study the standard business cycle theory and consequences of economic shocks, and the opportunities of policy responses in closed and open economies and under different institutional settings. They will also study the challenges to governments and central banks in designing fiscal and monetary policy responses. The course is more challenging than Principles of Macroeconomics with respect to both content and method in that the analysis to a larger degree is based on mathematical models.
Learning and teaching approaches
Lectures will adress the curriculum and the students will work on problem sets in exercise classes.
Learning outcomes
Upon successful completion of the course the student will have aquired skills to: • to understand and explain in writing and in formal models the structure of the economy, the significance of business cycles and the range of policy responses to counter them • explain models of small open economies and of international trade in goods and services and factors of production under various exchange rate regimes • explain and analyse the effect of policy responses to business cycles and their impact in both short and medium term
Assessment method
Four hours written exam without the aid of textbooks and notes.
Marking scale
Hans Ellefsen