Macroeconomics I

Module description

Summary:

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:

Internationalisation

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.

Sustainability

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.

Employability

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:2016/7
Module lecturers:
  • Dr Jack Rogers - Convenor
  • Professor Ben Zissimos - Lecturer
Module credit:30
ECTS value:

15

Pre-requisites:

None

Co-requisites:

Cannot be taken with BEE1029 or BEE1034

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

11

Duration (weeks) - term 2:

11

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
632370

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 macroeconomy. The time allocated to this is 1 hour on each day the economy is open, but students can log-in any time they like.

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
10900

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Examination (end of Term 1)452 hours1-7Summary written feedback and indicative answers
Examination (end of Term 2)452 hours1-7Summary written feedback and indicative answers
Participation in a Virtual Macroeconomy1010 weeks3, 5-7Individual performance and aggregate statistics
0
0
0

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 Macroeconomy CourseworkWritten Exam1-73 hours

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., (2010); Macroeconomics: A European Perspective (BAG)

(or Blanchard, O., 2013 Macroeconomics (6th ed updated), Pearson)

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?

Yes

Indicative learning resources - Web based and electronic resources

A Virtual Macroeconomic Environment

Origin date

01/09/2012

Last revision date

22/09/2015