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School of Social Sciences

Students outside a lecture theatre at The University of Manchester
BAEcon Economics
Learn how the social sciences can help you to understand today's world.

BAEcon Economics

Year of entry: 2018

Course unit details:
Macroeconomics IIA

Unit code ECON20401
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 1
Offered by Economics
Available as a free choice unit? Yes

Overview

See course Blackboard pages.

Pre/co-requisites

Unit title Unit code Requirement type Description
ECON10041 Pre-Requisite Compulsory
ECON10081 Pre-Requisite Compulsory
ECON10042 Pre-Requisite Compulsory
ECON10082 Pre-Requisite Compulsory
Introductory Mathematics ECON10061 Pre-Requisite Compulsory
ECON10001 Pre-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
Introductory Statistics for Economists SOST10062 Pre-Requisite Compulsory
ECON10132 Pre-Requisite Compulsory
Advanced Statistics ECON10072 Pre-Requisite Compulsory
Pre-requisites: (ECON10041 & ECON10042) or (ECON10081 & ECON10082) AND EITHER (ECON10061 & ECON10062) or (ECON10001 & ECON10132) or (ECON10071 & ECON10072)

Students must have taken at least one of the following combinations (compulsory Pre-Requisite):

  • (ECON10041 and ECON10042) or
  • (ECON10081 and ECON10082)

 

AND also at least one of the following combinations (compulsory Pre-Requisite):

  • (ECON10061 and ECON10062) or
  • (ECON10071 and ECON10072) or
  • (ECON10001 and ECON10132)

Aims

The aims of this course are:

  1. To introduce students to macroeconomic theory and policy analysis at an intermediate level.
  2. To develop critical analysis and lay the foundation for macroeconomics courses in the final year.
  3. To provide the employability skills of describing macroeconomic events and key global issues to non-economists with confidence.

Learning outcomes

At the end of this course successful students should be able to demonstrate an understanding of:

  1. The main macroeconomic variables.
  2. The classical, Keynesian and alternative approaches to macroeconomic modelling.
  3. The IS-LM model for closed economies.
  4. The Mundell Fleming model for open economies.

Syllabus

Introduction:

  • Key macroeconomic concepts and ‘stylized’ facts.
  • Discussion of differing approaches to macroeconomic modelling.

 

Flexible Price (Classical) Macroeconomics:

  • The determination of aggregate output, employment and interest rates, and the effectiveness of macroeconomic policy, under the assumption of flexible prices.
  • A comparison of the classical and heterodox approaches to macroeconomic stabilization policy.

 

Sticky-Price (Keynesian) Macroeconomics:

  • The determination of aggregate output, employment and interest rates, and the effectiveness of macroeconomic policy, under the assumption of sticky prices.
  • Introduction to short-run economic fluctuations.
  • The IS-LM model; the AS-AD model.
  • Applying the IS-LM model to the financial crisis of 2008.

 

Open Economy Macroeconomics:

  • Nominal and real exchange rates and exchange rate regimes.
  • The Mundell-Fleming model and the effectiveness of macroeconomic policy under alternative nominal exchange rate regimes.
  • The pathology of currency wars and global imbalances.

Teaching and learning methods

Lectures and tutorial classes.

Employability skills

Analytical skills
To provide a detailed and qualified economic perspective of recent and global macroeconomic events, referencing intermediate level macroeconomic models. The ability to provide critical analysis of key macroeconomic policy choices by governments and central banks, including monetary, fiscal and trade policy.

Assessment methods

Method Weight
Written exam 100%

Feedback methods

Home Works:

The tutorial sheets on blackboard will contain questions to be covered in the tutorials, and homework questions. For example; 1T) is covered in class whereas 3H) is considered homework (or formative assessment).

Students should take completed written attempts of homework to a teaching assistant (TA) during a feedback session advertised on Blackboard. Your solution sheet and any comments from your TA will provide your feedback for the homework. Students can choose ANY feedback session advertised on the home screen of the course web site on Blackboard.

 

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Additional Feedback Opportunities:


After each interaction slide in the interaction lectures there will be response specific feedback given to allow you to measure your progress towards preparation for the final assessment.

Use the 10 minute break following lecture slots to ask questions to the lecturer on the material covered during the lecture.

Use the course twitter account @MacII_PM to post questions about the material, course meetings and during the revision period leading up to the final assessment. The live feed for the course twitter account will also appear on Blackboard.
 

Recommended reading

The textbook for this course will be:

  • Gregory Mankiw (2010) “Macroeconomics”, 9th Edition, Worth Publishers, New York - Chapters 1,2,3,6,10,11,12,13,14

Or alternatively:

  • Paul Middleditch (2017) “Introduction to Macroeconomics”, Pearson Education, London - Chapters 1,2,3,4,5,6,7
     

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 16
Tutorials 5
Independent study hours
Independent study 77.5

Teaching staff

Staff member Role
Paul Middleditch Unit coordinator

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