ECON2011: MACROECONOMICS

• Principles of Economics (ECON1011) and EITHER Economic Methods (ECON1021) OR Calculus I (MATH1061) AND Linear Algebra I (MATH1071) AND Probability I (MATH1597) AND Statistics I (MATH1617)

• Microeconomics (ECON2021)

• Economic Theory (ECON2291).

• To provide students with the theoretical instruments for analysing the general equilibrium of an economy at an aggregate level, both in the short run, with a static model, and in the medium to long run, with a dynamic model.
• Real world policies and examples are introduced whenever possible to provide the necessary applied counterpart to the theoretical model being developed.

• Topics, reflecting the current state of the field, may include:
• Introduction to Income Determination: the Multiplier.
• Demand-Side Equilibrium: Income and the Interest Rate.
• An Introduction to Monetary and Fiscal Policy.
• Demand and Supply in Labour Market.
• Supply-side Equilibrium: Output and the Price Level.
• Equilibrium in the Static Model.
• Monetary, Fiscal and Incomes Policy.
• Search, Wage Rigidity and Unemployment.
• Rational Expectations and Demand Policy.
• The Foreign Sector and the Balance of Payments.
• Inflation, Productivity and Income Distribution.
• Inflation and Sector Unemployment.
• Introduction to Stock Adjustment Dynamics.
• Intertemporal Macroeconomic models.
• Real Business Cycles.
• Economic Growth.

Subject-specific Knowledge:

• Upon completion of the module, students should be able to:
• Understand the mechanism at work in the goods market, the asset market, and the labour market.
• Synthesise the interrelation of the above three markets into a single picture of the macro-economy.
• Understand the implications of different policy options.
• Compare and contrast the effects of these on the equilibrium level of key macro-economic variables.
• Analyse the dynamic structure of the economy and what limitations it places on economic policy.

Subject-specific Skills:

• Upon completion of the module, students should be able to apply standard macroeconomic models to key Economic Policy issues

Key Skills:

• Written Communication - e.g. through summative assessment.
• Numeracy - e.g. by applying core mathematical and statistical skills to answer examination questions

• Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study.
• Formative assessment to prepare for in-person exam.
• Summative assessment is by means of an in-person examination and assignment.

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