Macroeconomics I

Module description


The module consists of two semesters, each covering core theory and applied extensions from the main course textbook. Semester 1 starts by looking at the determination of short run equilibrium in the goods and money markets respectively, then brings them together, then brings in open economy features. Then the medium run is introduced with the labour market, and the long run with capital accumulation and technological growth. Semester 1 finishes with an application to the Crisis of 2007-2010. In semester 2, students participate in a live virtual macroeconomy, at the same time as reviewing the core theory of semester 1, before investigating extensions of this framework to a range of applied policy issues.

Additional Information:


The core textbook has a European application, however the theory covered is mainstream, and as such, international in scope.

Many global macroeconomic events have an international flavor, and open economy macro, by definition, explores international economic interdependencies.


The study of macroeconomic growth in particular provides a logical framework within which different assumptions can be incorporated, and long-run trade-offs between environmental preservation and consumption explored.


By the end of the module, students should have acquired a suite of analytical tools and problem-solving skills that will be very useful in a wide range of careers in the government, business and finance.

Full module specification

Module title:Macroeconomics I
Module code:BEE1031
Module level:1
Academic year:2018/9
Module lecturers:
  • Dr Debbie Du Preez - Lecturer
  • Dr Jack Rogers - Convenor
Module credit:30
ECTS value:





Cannot be taken with BEE1029 or BEE1034

Duration of module: Duration (weeks) - term 1:


Duration (weeks) - term 2:


Module aims

This module aims to provide students with a basic understanding of macroeconomic theory and a toolkit for analysing modern macroeconomic issues. 

ILO: Module-specific skills

  • 1. explain the components of aggregate demand and supply, how they are determined, and how they affect macroeconomic performance as measured by economic growth, unemployment and inflation
  • 2. explain the basis behind current theoretical controversies about how the economy works.
  • 3. critically assess different policy proposals for managing the macroeconomy

ILO: Discipline-specific skills

  • 4. critically analyse and evaluate a piece of economic research
  • 5. explain and demonstrate an appreciation for the types of issues that economics can help address

ILO: Personal and key skills

  • 6. identify the essential elements of a problem and organise a way to think about it systematically
  • 7. demonstrate the ability to organise and process information through class preparation and participation

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Lectures44Lectures cover all ILOs
Tutorials9Tutorials are classes that solve practical exercises and include more in depth discussion
Virtual Macroeconomy Participation10During the first 5 weeks of semester 2, twice a week students will be expected to participate in a virtual macro-economy. Whilst it is open, students can log-in any time they like.
Online quizzes10During semester 1, 10 online quizzes will be run. These consist of multiple choice questions aimed at testing students understanding of the work covered on a regular basis. A total of 10 hours is allocated for these quizzes.

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Tutorial QuestionsIn class1-7In-class feedback

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Examination (end of Term 1)402 hours1-7Summary written feedback and indicative answers
Examination (end of Term 2)402 hours1-7Summary written feedback and indicative answers
Participation in a Virtual Macroeconomy1010 weeks3, 5-7Individual performance and aggregate statistics
Online quizzes1010 weeks1-7Summary written feedback and indicative answers

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Exam (term 1), Exam (Term 2), Virtual Macro-economy Coursework, Online quizzesWritten Exam (3 hours)1-7August reassessment period

Re-assessment notes

The 3 hour exam will cover all the material from both semesters. 

Syllabus plan

The key macroeconomic variables that will be studied are output, prices and unemployment. The mode of analysing these variables will be in terms of time-period: short-run, medium run and long run. There will also be an application of the concepts developed throughout the course to the current economic crisis.

The Short Run:
Determination of demand through consumption, investment, government spending and taxation. Determination of effective demand and the multiplier. The relationship between saving and investment. The determination of money demand and the interest rate. The interaction between fiscal and monetary policy.

The Medium Run:
How the labour market works and how wages are determined. The determination of aggregate supply and demand. The interaction between inflation and unemployment. Macroeconomics and macroeconomic policy in an open economy context. The role of exchange rates. Fiscal balance and the balance of payments.

The Long Run:
The facts of growth, and the relationship between saving, capital accumulation and economic growth. The relationship between technological change and growth.

The Current Economic Crisis:
The tools developed in the course will be used to analyse the role of fiscal policy and quantitative easing in dealing with the crisis.

Other Extensions:
The module will finish with a range of applied extensions that focus on expectations, policy-making in practice, exchange rates, monetary and fiscal policy rules, and European integration.

Indicative learning resources - Basic reading

Basic reading:

Main Course Textbook:

Blanchard, O., Amighini, A., and Giavazzi, F., (2017); 3rd Edition Macroeconomics: A European Perspective (BAG)

Supplementary Textbook (optional):

Mankiw, G. and Taylor, M. (2007); Macroeconomics (European ed/6th ed) Worth (MT)

Note: there are many versions, including ‘International’ and ‘European’. Although the most up-to-date international or European editions will be most closely applicable to the course, you will be able to get by with older (i.e. cheaper) alternatives available on the web.

Module has an active ELE page?


Indicative learning resources - Web based and electronic resources

A Virtual Macroeconomic Environment, ELE online quizzes

Origin date


Last revision date