BAEcon Economics and Sociology

Year of entry: 2021

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Course unit details:
Macroeconomics 3

Unit code ECON20031
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 1
Offered by Economics
Available as a free choice unit? Yes

Overview

The aims of this unit are to: (i) to introduce students to macroeconomic theory and policy analysis at an intermediate level; (ii) to develop critical analysis and lay the foundation for economics courses in the final year (iii) to provide the employability skills of macroeconomic analysis and the ability to provide economic commentary on key global issues.

Pre/co-requisites

Unit title Unit code Requirement type Description
Introductory Mathematics ECON10061 Pre-Requisite Compulsory
Introductory Statistics for Economists SOST10062 Pre-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
Advanced Statistics ECON10072 Pre-Requisite Compulsory
Macroeconomics 2 ECON10262 Pre-Requisite Compulsory
ECON20031 Prerequisites: ECON10262 and (ECON10061 or ECON10071) and (SOST10062 or ECON10072)

ECON10262 AND (ECON10061 OR ECON10071) AND (SOST10062 OR ECON10072)

 

Aims

The aims of this unit are to: (i) to introduce students to macroeconomic theory and policy analysis at an intermediate level; (ii) to develop critical analysis and lay the foundation for economics courses in the final year (iii) to provide a detailed and qualified economic perspective of recent and global macroeconomic events using the framework of an intermediate and universal macroeconomic model.

Syllabus

1. The Scope and Data of Macroeconomics: Movements and Inter-Relations between Key Macroeconomic Variables; Aggregation Issues, National Income, Inflation and Money, The Closed Economy and Open Economy Transmission Mechanisms.

 

2. A Flexible Price Model: The Determination of Aggregate Income, the Role of the Factors of Production, and the Effectiveness of Macroeconomic Policy Under the Assumption of Flexible Prices.

 

3. Money and The Financial Markets: The Money Supply and Monetary Policy Enactment, The Quantity Theory and Money Demand, Economic Stabilisation, Overview of The Financial System, Bond Markets and Interest Rates, Financial Innovations and the Financial Crisis.

 

4. The Market for Goods and Services. The Market for Loanable Funds Approach to The Goods Market, Fiscal Policy and Government Debt, Fiscal Multipliers, Open Economy in the Loanable Funds Market. Intertemporal Expenditure Choices.

 

5. IS/LM Part I: Building the IS/LM model. The Keynesian Cross and the Investment Savings Schedule, The Money Market and the Liquidity Money Schedule.

 

6. IS/LM Part I: Applying the IS/LM model. Using the IS/LM for Economic Policy Analysis, Comparative Statics and the Financial Crisis Revisited.

 

7. The Open Economy IS/LM Model, Using the IS/LM and the IS/LM/BP Model to Un

Teaching and learning methods

Online Learning and Self-Guided Study

Intellectual skills

(i) problem-solving skills; (ii) the application of analytical models; (iii) the evaluation and critical analysis of arguments, theories and economic policy choices.

Practical skills

(i) assess time series data and draw some macroeconomic perspective and narrative. (ii) comment on economic events and inter-relations between key macro variables.

Transferable skills and personal qualities

(i) select and deploy relevant information from macroeconomic time series data; (ii) communicate ideas and arguments in writing making used of standard macroeconomic model predictions; (iii) apply skills of critical analysis and interpretation.

Assessment methods

20% Online Mid Term Test         

80% Final Exam                             

Feedback methods

There will be a set of exercises in a separate folder on Blackboard which will be considered homeworks (or formative assessment). Formative assessment is ‘non’ compulsory, but highly recommended for your successful progression towards the final assessment. Students should complete their homeworks at home and then see a teaching assistant for feedback on their written attempt.

Your solution sheet and any comments from your TA will provide your feedback for the homeworks. See Blackboard for times and locations of feedback sessions. (please remember to take the written attempt of your homework with you). Please be careful to take note of the period for which the feedback sessions run, normally up and until one week before the beginning of the examination period, and not during holiday periods.

Additional Feedback Opportunities:

The course meetings are an ideal opportunity to ask questions to your lecturer and interact generally in a context based learning environment; time will also be set aside after the meeting for you to ask questions directly to your lecturer in a smaller group.

Use the lecture quizzes, in the lecture folders for each week, to get immediate feedback on the key practice questions from the lecture. Follow the guidance given carefully, before a reattempt, to reinforce areas where you need to improvement in your knowledge.

During term time, drop in to ANY teaching assistant (TA) led FEEDBACK SESSIONS advertised in the Revision Zone of the course web site on BB.

Recommended reading

The Textbooks for this course will be:

•  Gregory Mankiw (2013), “Macroeconomics” Palgrave Macmillan

(Chapters 1,2,3,11,12,13)

• Paul Middleditch (2020), “Introduction to Macroeconomics”, Pearson Education.

(Chapters 1,2,3,5,6,8,9,11)

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Paul Middleditch Unit coordinator

Additional notes

For every 10 course unit credits we expect students to work for around 100 hours. This time generally includes any contact times (online or face to face, recorded and live), but also independent study, work for coursework, and group work. This amount is only a guidance and individual study time will vary

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