BSc Actuarial Science and Mathematics

Year of entry: 2022

Course unit details:
Macroeconomics 1

Unit code ECON10252
Credit rating 10
Unit level Level 1
Teaching period(s) Semester 2
Offered by School of Social Sciences
Available as a free choice unit? Yes

Overview

The aims of this course are:

(i) To provide a self-contained introduction to macroeconomics for economics students and general social scientists.

(ii)  To cover the preparatory material for more specialist courses in macroeconomics in the second and third years

(ii) To provide key employability skills such as ability to commentate and analyse recent key macroeconomic events and global issues relating to the macro economy.
 

Aims

The aims of this course are:

1.     To provide a self-contained introduction to macroeconomics for general social scientists.

2.     To cover the preparatory material for more specialist courses in economics in the second and third years.

Learning outcomes

Demonstrate knowledge of the major macroeconomic issues, policy objectives and national accounts.
• Understand the concept of macroeconomic modelling and how differing approaches fit into the modern debate on pluralism in macroeconomics.
• Demonstrate a detailed understanding of the extended Keynesian income-expenditure model alongside alternative models to represent a macro-economy.
• Understand the role of the commercial and central bank in the creation of money in the economy.
• Use the models covered to analyze a variety of fiscal and monetary policy choices to derive basic normative implications.
• Demonstrate critical awareness of the exchange rate and interest rate mechanism for macroeconomic policy including pathologies such as the recent financial crisis and currency wars and Brexit (2016).

Syllabus

1.    Introducing the Macroeconomic Variables Part I:

Overview of Macroeconomics, National Income and Economic Growth: Gross Domestic Product, Comparing Real and Nominal GDP, Long Run Growth and Short Run Fluctuations in Economic Activity 

2.    Introducing the Macroeconomic Variables Part II:

Unemployment, Inflation and International Trade. Measuring and Understanding the Components of the Labour Market. The GDP Deflator and Consumer Price Measures of Inflation. An Introduction to International Trade

3.    Macroeconomic Modelling:

Modelling the Macroeconomic Variables, Two Baseline Models and Economic Schools of Thought: The Three Markets and the Three Agents. The Circular Flow Model and an Overview of the Keynesian Cross and the AS/AD Model. Introduction to Economic Policy and a Delineation for the Schools of Economic Thought.        

4.    Money and The Financial Markets.

The Definition of Money. The Market for Central Bank Money and Monetary Policy. How Money is Created and the Money Multipliers. The Theory of Liquidity Preference and Money Market Equilibrium. The Financial Markets and the Mechanics of Monetary Policy. An Overview of the Financial Crisis.

5.    The Market for Goods and Services.

The Interest and Exchange Rate Channels, Components of Gross Domestic Product and the Goods Market. Fiscal Policy, the Multiplier and the Crowding Out Effect. Encompassing the Open Economy, the Market for International Trade and the Case of Brexit (2016). 

6.    The Labour Market.

A Static View of the Labour Market. Equilibrium and Disequilibrium Unemployment. An Introduction to a Dynamic View of the Labour Market and Unemployment Duration. The Phillips Curve and the Concept of Expectations. 

7.    The Aggregate Supply Aggregate Demand Model.

Introduction to the Aggregate Supply and Aggregate Demand Model. Short Run and Long Run Equilibrium in the AS/AD Model. Economic Policy Analysis Using the AS/AD model. The Financial Crisis Revisited and the State of Macroeconomics. 
 

Teaching and learning methods

Online Learning and Guided Self-Study

Employability skills

Analytical skills
To provide a detailed and qualified economic perspective of recent and global macroeconomic events. The ability to provide critical analysis of key macroeconomic policy choices by governments and central banks.

Assessment methods

80%      Exam

20%      Timed online test

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:

After each interaction slide in the interaction lectures there will be response specific feedback given to allow you to measure your progress towards preparation for the final assessment.

Use the 10-15 minute break following lecture slots to ask questions to the lecturer on the material covered during the lecture.

Use the course twitter account @Macro1_PM to post questions about the material, course meetings and during the revision period leading up to the final assessment. The live feed for the course twitter account will also appear on Blackboard.

Recommended reading

The Textbook for this course will be:
Paul Middleditch (2018), "Introduction to Macroeconomics", Pearson Ed. (Chapters 1 to 8)
Available in Blackwell’s Oxford Road, next to Arthur Lewis Building.

The book should provide background reading for lectures and allow students to deepen their knowledge about topics covered or discussed in the lectures

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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