Module ECON2011: ECONOMIC PRINCIPLES I: MACROECONOMICS

Department: Business School (Economics and Finance)

ECON2011: ECONOMIC PRINCIPLES I: MACROECONOMICS

Prerequisites

• Elements of Economics (ECON1011) AND EITHER Economic Methods (ECON1021) OR (MATH1061) Calculus and Probability I AND (MATH1071) Linear Algebra I OR (MATH1541) Statistics AND (MATH1561) Single Maths A OR (MATH1551) Maths for Engineers and Scientists AND (MATH1541) Statistics OR successful completion of Phase 1 of the Economics programme at Shandong University, China

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• To provide students with the theoretical instruments for analysing the general equilibrium of an economy at an aggregate level, both in the short run, with a static model, and in the medium to long run, with a dynamic model.
• Real world policies and examples are introduced whenever possible to provide the necessary applied counterpart to the theoretical model being developed.

Content

• Introduction to Income Determination: the Multiplier.
• Demand-Side Equilibrium: Income and the Interest Rate.
• An Introduction to Monetary and Fiscal Policy.
• Demand and Supply in Labour Market.
• Supply-side Equilibrium: Output and the Price Level.
• Equilibrium in the Static Model.
• Monetary, Fiscal and Incomes Policy.
• Search, Wage Rigidity and Unemployment.
• Rational Expectations and Demand Policy.
• The Foreign Sector and the Balance of Payments.
• Inflation, Productivity and Income Distribution.
• Inflation and Sector Unemployment.
• Introduction to Stock Adjustment Dynamics.
• The Dynamic Theory of Macroeconomic Policy.
• Real Business Cycles.
• The Political Business Cycle.
• Economic Growth I.
• Economic Growth II.

Learning Outcomes

• Upon completion of the module, students should be able to:
• Understand the mechanism at work in the goods market, the asset market, and the labour market.
• Synthesise the interrelation of the above three markets into a single picture of the macro-economy.
• Understand the implications of different policy options.
• Compare and contrast the effects of these on the equilibrium level of key macro-economic variables.
• Analyse the dynamic structure of the economy and what limitations it places on economic policy.

• Upon completion of the module, students should be able to apply standard macroeconomic models to key Economic Policy issues

• Written Communication e.g. through summative assessment.
• Numeracy e.g. by applying core mathematical and statistical skills to answer examination questions

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study. Formative assessment is by means of a test. Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Two mini-essays.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University