Macroeconomics II

Module description


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.

Additional Information:

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.

External Engagement
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
Module code:BEE2026
Module level:2
Academic year:2020/1
Module lecturers:
  • Ms Elisa Keller - Convenor
  • Dr Dudley Cooke - Lecturer
Module credit:30
ECTS value:



BEE1036 and BEE1037 or BEE1030 and BEE1031 


Cannot be taken with BEE2038 and BEE2039 

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


Duration (weeks) - term 2:


Module aims

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. explain the components of aggregate demand and aggregate supply, how they are determined, and how they affect macroeconomic performance
  • 2. explain 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 ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching activities40Lectures
Scheduled Learning and Teaching Activities5Tutorials

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Tutorial questionsIn class1-8In 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
MCQ test10Two hour time limit1-8Verbal feedback & indicative answers
Mid term exam1050 minutes1-8Verbal feedback & indicative answers
Term 1 examination402 hours1-8Verbal feedback
Term 2 examination402 hours1-8Verbal feedback

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
MCQ and Term 1 ExaminationExamination (50%) 2 hours1-8August Examination Period
MCQ and Term 2 ExaminationExamination (50%) 2 hours1-8August Examination Period

Syllabus plan

  • Measurement
  • 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

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.

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Origin date


Last revision date