The first term covers economic growth and develops a dynamic macroeconomic model from micro foundations, that is aggregate relationships are built up from microeconomic optimisation by representative agents, an important feature of modern macroeconomics. With this foundation, ideas are formalised further in the second term, before delving in to more open economy macroeconomics.
This module takes a European and American perspective of macroeconomics, but these ideas are application even in developing countries. Students gain an understanding of exchange rates, why they change over time, what determines them, how to assess the economic prospects of countries. Any company in a global economy must deal with these issues.
Previously, we had a guest speaker lecture on Central Bank policy.
In this module students develop a number of valuable skills, including their capacity for logical thinking, problem solving, analytical and discursive skills.
Full module specification
|Module title:||Macroeconomics II|
Non-requisites: Cannot be taken with BEE2024
|Duration of module:||
Duration (weeks) - term 1: |
11Duration (weeks) - term 2:
The aim of the module is to equip students with the basic theoretical ideas of modern macroeconomics,
and how they are applied to core economic problems.
ILO: Module-specific skills
- 1. understand the components of aggregate demand and aggregate supply, how they are determined, and how they affect macroeconomic performance
- 2. understand the basis behind current theoretical controversies about how the economy works
- 3. critically assess different policy proposals for managing the macro-economy
- 4. present economic arguments for and against key macro-policy issues
ILO: Discipline-specific skills
- 5. present and discuss a piece of economic analysis
- 6. critically evaluate the breadth of issues that economics can analyse
ILO: Personal and key skills
- 7. identify the essential elements of, and to organise ways to think about, a problem
- 8. demonstrate organisational skills developed by reading for the course topics and preparation for classes
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Tutorial questions||In class||1-8||In class feedback|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|MCQ test||10||Four hour time limit||1-8||Verbal feedback & indicative answers|
|MCQ test||10||Two hour time limit||1-8||Verbal feedback & indicative answers|
|Term 1 examination||40||2 hours||1-8||Verbal feedback|
|Term 2 examination||40||2 hours||1-8||Verbal feedback|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|MCQ and Examination||Examination (100%) 3 hours||1-8||August Examination Period|
- Economic growth
- Micro foundations and a dynamic macro model
- Labour Market: Unemployment and wage determination
- Expectations: The basic tools. Consumption and investment. Output and policy.
- Fiscal and monetary policy
- The Phillips Curve
- Macroeconomic Policy in an Open Economy Context
- Exchange Rates
Indicative learning resources - Basic reading
Abel, A., Bernanke, B., and Croushore, D., Macroeconomics (8th edition, or above) Pearson.
Williamson, S. D., Macroeconomics, 5th ed., Pearson
Mankiw, G., and Taylor, M, Macroeconomics (European edition/6th edition, or above), Worth.
Note: there are many versions (inc. ‘International’ and ‘European’) of these books and they change only marginally from edition to edition.
Module has an active ELE page?
Last revision date