Year of entry: 2018
Course unit details:
|Unit level||Level 1|
|Teaching period(s)||Semester 1|
|Offered by||School of Social Sciences|
|Available as a free choice unit?||No|
See course Blackboard pages.
This course unit is for BA Econ students only (anyone from another degree programme wanting it to take it should take ECON10252 in the second semester).
NOT available to students who have previously taken ECON10041/42 or ECON10081/82.
The aims of this course are:
- To provide a self-contained introduction to macroeconomics for general social scientists.
- To cover the preparatory material for more specialist courses in economics in the second and third years.
- Demonstrate knowledge of the major macroeconomic issues, policy objectives and national accounts.
- Understand the concept of macroeconomic modelling and how differing approaches fit into the modern debate on pluralism in macroeconomics.
- Demonstrate a detailed understanding of the extended Keynesian income-expenditure model alongside alternative models to represent a macro-economy.
- Understand the role of the commercial and central bank in the creation of money in the economy.
- Use the models covered to analyze a variety of fiscal and monetary policy choices to derive basic normative implications.
- Demonstrate critical awareness of the exchange rate and interest rate mechanism for macroeconomic policy including pathologies such as the recent financial crisis and currency wars and Brexit (2017).
Introducing the Macroeconomic Variables Part I:
- Overview of Macroeconomics
- National Income and Economic Growth: Gross Domestic Product
- Comparing Real and Nominal GDP
- Long Run Growth and Short Run Fluctuations in Economic Activity
Introducing the Macroeconomic Variables Part II:
- Unemployment, Inflation and International Trade
- Measuring and Understanding the Components of the Labour Market
- The GDP Deflator and Consumer Price Measures of Inflation
- An Introduction to International Trade
- Modelling the Macroeconomic Variables
- Two Baseline Models and Economic Schools of Thought: The Three Markets and the Three Agents
- The Circular Flow Model and an Overview of the Keynesian Cross and the AS/AD Model
- Introduction to Economic Policy and a Delineation for the Schools of Economic Thought
Money and The Financial Markets:
- The Definition of Money
- The Market for Central Bank Money and Monetary Policy
- How Money is Created and the Money Multipliers
- The Theory of Liquidity Preference and Money Market Equilibrium
- The Financial Markets and the Mechanics of Monetary Policy
- An Overview of the Financial Crisis
The Market for Goods and Services:
- The Interest and Exchange Rate Channels
- Components of Gross Domestic Product and the Goods Market
- Fiscal Policy
- The Multiplier and the Crowding Out Effect
- Encompassing the Open Economy
- The Market for International Trade and the Case of Brexit (2016).
The Labour Market:
- A Static View of the Labour Market
- Equilibrium and Disequilibrium Unemployment
- An Introduction to a Dynamic View of the Labour Market and Unemployment Duration
- Introduction to the Phillips Curve and Expectations
The Aggregate Supply Aggregate Demand Model:
- Introduction to the Aggregate Supply and Aggregate Demand Model
- Short Run and Long Run Equilibrium in the AS/AD Model
- Economic Policy Analysis Using the AS/AD model
The Financial Crisis Revisited and the State of Macroeconomics
Teaching and learning methods
The material is delivered via the online (Blackboard) provision of material (readings, clips) and lectures.
The learning process of students is supported by tutorials (exercise questions and discussion based questions) and the provision of further online material (such as discussion boards and practice quizzes).
- Analytical skills
- To provide a detailed and qualified economic perspective of recent and global macroeconomic events. The ability to provide critical analysis of key macroeconomic policy choices by governments and central banks.
- Mid-Term Exam on Blackboard (20%).
- Final Exam (80%).
For information about feedback please follow this link:
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.
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 @MacPrin_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.
The Textbook for this course will be:
- Paul Middleditch (2017), “Introduction to Macroeconomics”, Pearson Ed. (Chapters 1 to 8). Available in Blackwell’s Oxford Road, next to Arthur Lewis Building.
The book should provide background reading for lectures and allow students to deepen their knowledge about topics covered or discussed in the lectures.
|Scheduled activity hours|
|Assessment written exam||1.5|
|Independent study hours|
|Paul Middleditch||Unit coordinator|