Nationalekonomi A, Makroteori

The version indicates the term and period for which this course syllabus is valid. The most recent version of the course syllabus is shown first.

by 28 Feb 2007

by Director of Undergraduate Studies Bo Jonsson, Department of Business Administration, Technology and Social Sciences 18 Feb 2013

After the course the student will be able to thoroughly explain core macroeconomic concepts and relations. In other words, the student will have the knowledge to:
1.    Define and explain potential strengths and weaknesses of different macroeconomic concepts such as GDP, economic growth, current account, unemployment, inflation, exchange rate, savings and interest rate.
2.    Describe - verbally and graphically - the structure of the labor market and thus explain concepts such as unemployment and hysteresis.
3.    Describe - verbally and graphically – the goods market (private consumption, investments, public expenses and net exports). The student will be able to explain changes in GDP and prices due to short term exogenous and endogenous changes in the goods market.
4.    Describe - verbally and graphically – the short term interconnections between the goods, money and exchange rate markets. Furthermore, the student will be able to verbally and graphically analyze the possibilities and limitations of fiscal and monetary policy in a small open economy (subjected to different exchange rate regimes).
5.    Describe - verbally and graphically – the mid-term effects on GDP, employment, prices and exchange rates when changing aggregate demand and aggregate supply (a small open economy subjected to different exchange rate regimes).
6.    Describe - verbally and graphically –the correlation between inflation and unemployment.
7.    Describe main differences between various macroeconomic schools of thought.
8.    In group, work with and analyze different macroeconomics problems under objective 1-9 above.
9.    In front of other student (and teachers) present and motivate the analysis and solutions of the problems tackled in objective 1-10 above.

The following areas will be included:
•    National income
     o    How to calculate GDP
     o    GDP over time and between countries
     o    GDP as welfare indicator
•    The nation’s savings and the balance of payments
•    Unemployment and inflation
     o    How to measure unemployment and inflation
     o    Pros and cons with unemployment
     o    Pros and cons with inflation
•    Different macroeconomic schools of thought
•    The labor market
     o    Voluntary and involuntary unemployment
     o    Monopolistic trade unions
     o    Hysteresis according to the insider/outsider model
•    The concept of money
     o    Barter
     o    The function of money
     o    The central bank
•    Prices and exchange rates in the long run
     o    The classical quantity theory of money
     o    Purchasing power of parity
•    The business cycle
•    The Keynesian model
     o    Consumption, investment, government spending, export and import
     o    The multiplier analysis
     o    Fiscal policy
•    Fiscal and monetary policy in the open economy
     o    The money market
     o    The IS/LM model
     o    Exchange market
     o    The Mundell/Fleming model
•    Aggregate demand and aggregate supply in the short term and the mid term
     o    Demand and supply chocks
•    Phillips curves
     o    The role of expectations

Teaching in the form of lectures and a number of mandatory seminar sessions where students work with problems dealing with the course's various areas. Before the lectures the student is given the opportunity to conduct quizzes which covers basic concepts and problems. The purpose of these quizzes is to stimulate learning and thus prepare students for lectures and seminars.

The course ends with a (individual) written exam covering the theoretical content of the course equivalent to 6 credits. The exam is given the grades VG (passed with honor), G (passed) or U (failed). The written exam examines mainly targets 1-7 above.

The examination also include mandatory seminars equivalent to 1.5 credits. At the seminars students in group present and justify solutions to macroeconomics problems in front of other students (and the teacher). The seminars are given grades G (passed) or U (failed). For the grade G (passed) students must pass three of four seminars. The seminars exam primarily targets 8-9.

The grades of the written examination will determine the final grade of the course.

Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than five days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.

Olle Hage - Senior Lecturer

The course N0011N is equal to IEN341

Fregert K., Jonung L.; Makroekonomi - Teori, politik & institutioner, Studentlitteratur, latest edition.

Department of Business Administration, Technology and Social Sciences

Johan Brolund, johan.brolund@ltu.se, 0920-49 36 61

Fredrik Pettersson, fredrik.pettersson@ltu.se, 0920-49 25 85

Study guidance for the course is to be found in Fronter two weeks before the course starts. Students applying for single subject courses get more information in the Welcome letter.