Faculty of Economics and Business
BACHELOR IN ECONOMICS FIRST YEAR Course
Macroeconomics
Code
802346
Module
Basic Formation
Area
Economics
Nature
Basic
Attendance
2,7
Non Attendance
3,3
Semester
2
Credits
6
Year
1
COORDINATION DEPARTMENT Fundamentos del Análisis Económico II
COORDINATOR AND CONTACT Miguel Sebastián;
[email protected]
% OF TOTAL CREDITS
ATTENDANCE
Lectures
30%
100%
Classes
10%
50%
Tutorials
6%
100%
Assessment activities
4%
100%
Homeworks and class assignments
20%
0%
Time to study
30%
0%
TEACHING ACTIVITIES
SYNOPSIS
Faculty of Economics and Business
BRIEF DESCRIPTION An introduction to Macroeconomic analysis.
PRE-REQUISITES Background in Mathematics.
OBJECTIVES To communicate quite complex ideas and theories in a clear manner, undertake numerical calculations, and interpret data presented in a variety of forms. To analyze and evaluate macroeconomic problems and solutions, interpret and use figures and tables, and employ oral and written skills.
COMPETENCES General:CG1,CG2 Transversal:CT1 Specific: CE3, CE6, CE8, CE9
LEARNING METHODOLOGY A mixed methodology of teaching and learning will be used in all educational activities with the aim of encouraging students to develop a collaborative and cooperative attitude in the pursuit of knowledge.
TOPICS COVERED (Syllabus) TOPIC 1. Gross Domestic Product and national accounts: Production, added value and expenditure approaches. TOPIC 2.
Inflation: Concept, effects, measurements and deflation.
TOPIC 3.
Economic growth and economic cycles.
TOPIC 4.
Labor Market: Labor market indicators, measurements.
TOPIC 5. Savings, Investment Spending and the Financial System: Relationship between savings and investment, aspects of loanable funds market, financial assets, stock market. TOPIC 6. Aggregate Supply and Aggregate Demand: Differences between the short and the long run, the aggregate supply curve, the aggregate demand curve, the multiplier, the AS – AD model. TOPIC 7. Fiscal Policy: Concepts, Expansionary and contractionary fiscal policy, Automatic stabilizers, Consequences in the long run of the fiscal policy: the Public Debt. TOPIC 8. Money, Central Banks and Monetary Policy: Money: Concept, forms and roles. Money Supply, Open-market operations to change interest rates. TOPIC 9.
Money and Inflation: The inflation tax. Hyperinflation, disinflation and the
Faculty of Economics and Business optimal rate of inflation.
ASSESSMENT Exams
% Share of Final Grade
50%
% Share of Final Grade
30%
& Share of Final Grade
20%
Final Exam 50%
Other Activities 2 in class Tests
Other activities Seminars and problem sets
Active participation in the classroom: 5% Individual oral presentations: 5%
EVALUATION CRITERIA Students will be graded following a continuous assessment based on: a) b) c) d)
Participation in class (frequency and quality). Assessment of problems and exercises. Quality of class presentations. Assessment of 3 or 4 intermediate tests and a final exam.
The weights in the final grade score of the previous items will be the following: - Participation, assessment of problems, presentations and intermediate tests (Type 1 Points): 50%. - Final exam (Type 2 Points): 50%. It will be strictly necessary to get, at least, 20 out of 50 in Type 2 Points to pass the subject. The final grade of those students who do not pass the subject will be: In “convocatoria ordinaria”: Fail: for those who follow the classes and do the intermediate exams. Not graded: for those who decide to drop out the subject before December 21st. In “convocatoria extraordinaria”: Fail: for those who do not pass the final exam + intermediate assessment. Not graded: for those who decide not to do the final exam. Continuous assessment in the extraordinary examination: in case one student has failed the ordinary examination, having attended the final exam and participated in the continuous assessment, the mark to be considered as continuous assessment for that extraordinary examination will be the final mark obtained in the ordinary examination.
Faculty of Economics and Business
TIMETABLE UNIT 0: INTRODUCTION: o Macroeconomics an overview. Levels and growth rates. Flow and stock variables. o 1 week, 1 Seminar (A premier on mathematical notation and basic concepts.) UNIT 1: BASIC MACROECONOMIC CONCEPTS. o Macroeconomics: An overview. Measuring Unemployment. Frictional and Structural Unemployment. Price Indexes. Inflation. Exchange Rates. Measuring the Economy: GDP. Real vs. Nominal GDP. Economic Cycles. Economic Growth. o 3,5 weeks. 2 Seminars (Problems sets #1-#2) (Ch 10, 12 y 13, 19, Krugman et al.; Ch 1 Farmer; Ch 23, 25, 28, 30
Mankiw).
UNIT 2: NATIONAL ACCOUNTING. o Measuring the economic activity. Circular flow of Income. Measuring the GDP: product, expenditure, and income. Savings and Investment. Public Sector. Open Economies: Exchange rates and competitiveness. o
2,5 Weeks. 2 Seminars (Problem sets # 3, 1st Midterm exam) (Ch 11 and 19, Krugman et al., Ch 2, Farmer; Ch 23 Mankiw)
UNIT 3: BASIC MACROECONOMIC MODEL. AGGREGATE SUPPLY. o Long-run production and employment. Classic Aggregate Supply Theory: real wages and equilibrium. Short-run Aggregate Supply: nominal wages. Classical and Keynesian models: unemployment and Economic Policy. Applications: Real Business Cycle. o 3 weeks. 1 Seminar (Problem Set #4).
(Ch 13, 14 & 15, Krugman et al., Ch 4, 5 (7) Farmer, Ch 18, 21, 29-30, 33-34 Mankiw)
UNIT 4: BASIC MACROECONOMIC MODEL. AGGREGATE DEMAND. o Money. Functions of money. Money and Central Banks. Money Supply. Classical Money Demand and Aggregate Demand: Price Levels. Supply shocks, demand shocks, macroeconomic equilibrium. Economic Policy and Aggregate Demand: Fiscal and Monetary Policy. o 3 weeks. 1 Seminar (Problem Set #5) (Ch 13, 14 & 15, Krugman et al., Ch 4, 5 (7) Farmer, Ch 18, 21, 29-30, 33-34 Mankiw)
UNIT 5: MONEY, BANKING AND CENTRAL BANKS, INFLATION AND MONETARY POLICY. o Money and Inflation. Inflation and Monetary Policy: the basic and the extended inflation models. Interest rates and Monetary Policy. Effects of Inflation. Deflation. Hyperinflation. o 2 Weeks. 2 Seminars (2nd Midterm, Final Exam Preparation Q&A).
(Ch 16 & 17, Krugman et al.; Ch 5 Farmer; Ch 29 & 30, Mankiw)
Faculty of Economics and Business Basic References (there are Spanish versions, also available) - Krugman, P., Wells, R. & Graddy, K., Essentials of Economics, 3rd ed., Worth Publishers, 2015. - Mankiw G, Principles of Economics, 5th ed., South-Western College, 2011 - Farmer R, Introduction to Macroeconomics, 2002.
RESOURCES BASIC BIBLIOGRAPHY 1. Krugman, P., Wells, R. and Graddy, M., Essentials of Economics, Worth Publishers, 2011. 2. Krugman, Paul and Wells, Robin. Macroeconomics, Worth Publishers. 3. Mankiw G, Principles of Economics, 5th ed., South-Western College, 2011 4. Farmer R, Introduction to Macroeconomics, 2002.
COMPLEMENTARY BIBLIOGRAPHY
OTHER RESOURCES Slides of every topic and practice sheets are available at the teacher’s website: https://sites.google.com/site/aghiernaux/macroeconomics
