by Department of Business Administration and Social Sciences 28 Feb 2007

by Director of Undergraduate Studies Daniel Örtqvist, Department of Business Administration, Technology and Social Sciences 14 Feb 2020

The course is on a basic level, but it builds on the course Introductory Macroeconomics. The course is divided in four areas; labor market policy, economic stabilization policy, history of economic policy, and economic growth. Mostly graphical and oral presentation will be applied, but also mathematical models will be used, in order to illustrate and analyze relevant economic relations. The student’s communication will be both oral and written. After the course the student’s will be able to:

Knowledge and understanding
•    describe the specific macroeconomic conditions of the Swedish economy regarding, for example, the labor market, business cycles and economic growth
•    describe the historical development of business cycles and economic growth in Sweden
•    describe different economic theories related to economic growth

Skills and abilities
•    apply basic macroeconomic theory to analyze macroeconomic issues linked to the labor market, stabilization policy and economic growth
•    analyze how economic policy affects the macroeconomic outcome of the economy
•    in a group, work with and analyze various applied macroeconomic issues
•    present, motivate and discuss the analyzes and solutions of various macroeconomic issues
•    in a group, carry out an analysis of an applied macroeconomic problem and report it in writing

Judgement
•    discuss and relate to the economic policy in Sweden and its effects on e.g. economic activity, economic growth and the labor market

The following areas are addressed:
 
Labor market policy:
•    Structural unemployment and application of the Beveridge curve
•    NAIRU and its determinants
•    Swedish unemployment and its determinants
•    Gender equality in wage statistics
•    Active and passive labor market policy

Stablization policy in practice:
•    The purpose of stabilization policy
•    Different economic forecasts
•    Make forecasts on the economy using the AS-AD model
•    Different stabilization policy approaches; rule-based or discretionary
•    Criticism of active stablization policy
•    The institutional framework for stabilization policy in Sweden    

Stabilization policy during the 20th century, until today:
•    Historical exchange rate regimes
•    The history of stabilization policy in Sweden
•    Political business cycle
•    EMU, Sweden and the Euro
•    Financial crises

Economic growth:
•    Growth accounting
•    Neoclassical growth theory (Solow model)
•    Endogenous growth theory
•    Institutional theory
•    Income distribution

The teaching takes the form of lectures, self-study and seminars where the students in group’s discuss and present solutions to current problems related to the course areas. Prior to the lectures, the students have the opportunity to conduct individual exams (smaller preparatory tests), which mainly deal with basic concepts and problems. The purpose of the preparatory tests is to stimulate learning and prepare the student for the lectures and seminars. The theoretical lectures are supplemented with guest lectures, the purpose of which is to show how the course problems and theoretical reasoning are used practically within, for example, authorities or various organizations. In the course, a written report will also be conducted in which a current macroeconomic problem is analyzed using various macroeconomic tools and reasoning.

The course includes four compulsory seminars corresponding to 1.5 credits. At the seminars, students will orally, both in groups and individually, present, motivate and discuss solutions to economic problems related to the various areas in the course. The seminars mainly examine generic abilities such as oral presentation and collaboration in groups. At the seminars the grades U, G are given.

The course also includes a written report in a group corresponding to 1.5 credits. The report will analyze a current macroeconomic problem, which requires independent collection of data and facts relevant to the problem. The report gives the grades U, G.

The course is concluded with a written individual exam corresponding to 4.5 credits. The grades U, G, VG are given on the exam. The exam determines the final grade on the course.

Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than three 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.

Linda Wårell

The course N0012N is equal to IEN342

Fregert K., Jonung L. Makroekonomi - Teori, politik & institutioner, Studentlitteratur, latest edition.
Persson M., Skult E. Tillämpad makroekonomi, SNS Förlag, latest edition.

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Department of Business Administration, Technology and Social Sciences

Study guidance for the course is to be found in our learning platform Canvas before the course starts. Students applying for single subject courses get more information in the Welcome letter. You will find the learning platform via My LTU.