Module description
What is the module about?
This module intends to provide students with theoretical and practical understanding of macroeconomics. The course covers long run and short run analysis of the economy, goods, money and labour market analysis and policy implications.
The module is divided into three blocks: (1) very long-run analysis (growth theories), (2) long-run analysis (labour market, money market and inflation analysis) and (3) short-run analysis (IS/LM model and AD/AS). The final lecture will serve as an introduction to open economy topics and provide exam guidance.
Pre-requisites: Students MUST have passed 4QQMB102 Principles of Economics. Students must also have a good knowledge of calculus and basic mathematical tools such as log transformations. Visiting students must have studied an introductory economics course and must also have a good knowledge of calculus and mathematics.
Who should do this module?
This module is aimed at students wanting a deeper understanding of the foundations of the macroeconomy. The module aims to provide students with a solid knowledge of macroeconomic concepts and models and the ability to apply them to economic events. It develops the tools required for third year optional courses involving macroeconomics. The module uses basic maths concepts such as simultaneous linear equations, exponential and logarithmic functions, and differentiation. Knowledge of these concepts will be essential.
Provisional Lecture Outline
Lecture 1: National Income: Where it Comes from and Where it Goes
Lecture 2: Long-run Economic Growth: Growth Theory I and II
Lecture 3: Unemployment and Labour Market
Lecture 4: The Monetary System and Inflation
Lecture 5: Introduction to Economic Fluctuations
Lecture 6: Building IS/LM Model
Lecture 7: Applying IS/LM Model
Lecture 8: Aggregate Supply and the Short-Run Trade-off between Inflation & Unemployment
Lecture 9: Dynamic Model of Economic Fluctuation
Lecture 10: Revision, Exam Guidance, and Open Economy
Assessment details
80% Examination
20% Examination (Video Submission)
Teaching pattern
Weekly Lecture
Weekly Tutorial
Suggested reading list
Key text or background reading
The primary textbook for this module is 'Macroeconomics' by N. Gregory Mankiw (9th or 10th Edition). Additionally, supplementary readings will be provided on a weekly basis. Additional recommended reading includes: Burda, Michael and Wyplosz, Charles. (2017). 'Macroeconomics: A European Text,' 7th Edition, Oxford University Press. Students are expected to consult KEATS for the weekly reading list and updates.