2280.16 - Principles of Macroeconomics

2280.16

Principles of Macroeconomics

7.5

Upper secondary diploma with B-level mathematics.

The purpose of this course is to prepare students to read relevant academic literature in economics independently, as well as to apply macroeconomic methods and approaches to the analysis of economic issues

Macroeconomics studies how the whole economy is interconnected, topics include production in the economy as a whole, the labour market as a whole, and the national balance of payments, interest rate levels, price inflation and similar topics. In macroeconomics we examine what influences the phenomena mentioned in order to make forecasts about how the economy will evolve, as well as to identify the options for influencing this evolution through financial policy and other economic policy. Students will be taught about a broad selection of political economy issues, without examining any particular topic in depth. This subject will enable students to acquire knowledge about the main issues in the economy, and to learn about methods and results in political economy. The main topics in macroeconomics will be touched on both long-term and short-term using relevant empirical material, students will be equipped with the skills to understand how the political economy works, and will get a notion of how politics can influence the economy. Theoretical models will be analysed in graphical form using simple mathematics. Students are expected to learn to understand the link between causes and effects in simple mathematical models of the political economy, and the course will emphasise that students should understand the mechanics and dynamics of the economy that lead to the results calculated mathematically.

The course bibliography will be discussed in lectures and class-based exercises. During class-based exercises students will be required to regularly present answers to tasks in the course bibliography, or to write short reports on given topics.

The successful student can demonstrate ability to: • Analyse the fundamental structure of the political economy in relation to national budget concepts, identities and behavioural equations • Analyse the difference and relationship between the real economy and the financial portion in nominal value, as well as to analyse the difference between long-term and short-term economics • Describe and interpret current events in the political economy within the framework of the models students have learnt • Use the graphical models to describe equilibriums and to demonstrate the development from imbalance to balance, as well as to support the graphic description using simple mathematical relations • Analyse the Keynesian 45-step model and its importance for macroeconomic equilibrium • Use the AD-AS model for differential analysis of the shift between equilibrium and imbalance, as well as to use the model to analyse the advantages and disadvantages of different types of economic policy

Oral examination lasting 20 minutes with 40-minute preparation time. Students are allowed to use the course bibliography and personal notes.

External

7-

Will be made available at the department

Hermann Oskarsson