Learning outcome

After successfully completing the course, the candidate will have achieved the following learning outcomes defined in terms of knowledge, skills and general competence.

The candidate:

- Is familiar with the objectives and instruments of macroeconomic stabilisation policy

- Understands elementary national accounts, including different balances in the balance of payments

- Is familiar with the procedures for the formation of constant prices and price indices, especially in the consumer price index

- Understands the interaction between product and labour markets at the macro level, including being able to explain the different types of unemployment

- Is familiar with and able to analyse the so-called paradox of thrift using a simple multiplier model

- Is familiar with the different factors that may explain variations in private consumption, private real investment and imports and exports

- Can analyse the effects of economic cycles and fiscal policy using a multiplier model

- Understands how monetary and currency markets work, including the importance of the so-called interest rate and purchasing power parity and the choice of inflation targets

- Can analyse monetary and fiscal policy in a multiplier model in which foreign exchange plays an integral role

- Is familiar with the so-called fiscal rule in fiscal policy and understands the interaction between monetary and fiscal policy

- Is familiar with the reasons for inflation and can analyse conflicting objectives in this context using the Phillips curve

Course Description

The course will focus on the following topics:

- Macroeconomic aims and instruments

- National accounting

- The labour market and unemployment categories

- Demand and supply at the macro level

- Multiplier model with variables: Total activity level, macro-level private consumption, macro-level private real investment, public expenditure and taxes, foreign trade, currency markets

- Macroeconomic stabilisation policy

Teaching and Learning Methods

3-4 hours of lectures per week in the autumn semester. The course includes up to 3 assignments (voluntary submission), which will be corrected, graded and reviewed by the lecturer.

Assessment Methods

Written examination, 4 hours.

Minor adjustments may occur during the academic year, subject to the decision of the Dean