Module ECON2011: MACROECONOMICS

Department: Economics

ECON2011: MACROECONOMICS

Prerequisites

• Principles of Economics (ECON1011) and EITHER Economic Methods (ECON1021) OR Calculus I (MATH1061) AND Linear Algebra I (MATH1071) AND Probability I (MATH1597) AND Statistics I (MATH1617)

Corequisites

• Microeconomics (ECON2021)

Excluded Combination of Modules

• Economic Theory (ECON2291)

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

• Topics, reflecting the current state of the field, may include:
• 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.
• Intertemporal Macroeconomic models.
• Real Business Cycles.
• Economic Growth.

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 the in-person examination.
• 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 seminars. Learning takes place through attendance at lectures, preparation for and participation in seminars, and private study.
• Formative assessment to prepare for in-person examination.
• Summative assessment is by means of an in-person examination and continuous assessment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

One written piece of work to prepare students for the summative exam.

■ 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