Macroeconomics

6 ECTS credits
156 h study time

Offer 2 with catalog number 1000354BNR for all students in the 2nd semester at a (B) Bachelor - advanced level.

Semester

2nd semester

Enrollment based on exam contract

Impossible

Grading method

Grading (scale from 0 to 20)

Can retake in second session

Yes

Enrollment Requirements

Je hebt ‘Inleiding Macro-economie’ gevolgd, alvorens ‘Macro-economie’ op te nemen.

Taught in

Dutch

Faculty

Faculty of Social Sciences & SolvayBusinessSchool

Department

Applied economics

Educational team

Ellen Van Droogenbroeck (course titular)
Ronny Verbraecken

Activities and contact hours

26 contact hours Lecture
15 contact hours Seminar, Exercises or Practicals
141 contact hours Independent or External Form of Study

Course Content

The Macroeconomics course teaches in a structured way how to look at general economic problems using economic models.

The course shows the relationship between economic growth in the long term, the different views on the supply side over the medium term, and business cycle fluctuations in the short term. We explain economic fluctuations by the interaction of demand components (in a closed and an open economy) and the supply side. We also stress the role of government in the economy, especially by the setting of monetary and budgetary policy.

We apply the economic models to real economic problems, to study the consequences of certain choices on the long and short term. Especially for government intervention there is a trade off between short-and long-term effects of policy.

Course material

Handbook (Required) : Macroeconomics, Mankiw, N. G., 10de, London: Worth Palgrave MacMillan, 9781319243586, 2019

Additional info

Lecture

The theory-classserves as a guide to understanding macro-economics, and is a support in the processing of the material covered in the handbook. In the theory class we will look at the key concepts, we describe their relationships, and learn how you can begin to think independently in a structured way about a certain macroeconomic issue.

Exercise class

In each exercise we jointly solve problems of varying degree of difficulty. The exercises allow you to monitor whether you know the basic concepts, understand and can apply them. Each student (or group of students) is expected to participate actively in the discussion of the exercises. In the first week of the course, the practical organization of these classes is communicated.

Self study

You will have to spend time independently by studying the relevant chapters of the textbook, the notes from the lectures and the preparation of the exercises. Actively presence in class, both theory and exercise class, is the best way to prepare yourself.

Learning Outcomes

General competencies

We first study long-term economic growth and then we discuss the short-term fluctuations in economic activity by a detailed analysis of the demand and supply side, to combine both in a study of government policy.

Introduction
- Understand the main economic quantities
- Understand the links between the economic quantities.
Long-term economic growth
- Understand the exogenous growth model from Solow, and how capital accumulation determines economic growth.
- Know how the parameters of the Solow model determine growth.
- Apply the Solow model on practical issues about development and economic growth.
Economic fluctuations
- Demand side
  - Understand the main theories of consumption and investment.
  - Understand how the monetary/financial system functions.
  - Understand how an open economy differs from a closed economy.
- Supply side
  - Understand the main theories that explain supply and the role that expectations play in it.
  - Understand how the supply side in the long and short term differs.
  - Know how government policy affects the supply side.
Government policy
- Understand the structure and the effects of monetary policy.
- Understand the structure and the effects of budgetary policy.
- Understand the economic and political considerations of government policy.

In the general education that this course offers:

Look at problems with a critical approach.
Make use of economic models to analyse general economic problems, and propose solutions.
Apply economic models to critically analyse policy.
Understand the limitations of macroeconomic analysis.

Course specific competencies

These three models are the basic tools for macroeconomics. Firstly, we expect you to flawlessly master the basic concepts of these models. You know their definition, know how to recognize this concept, how to calculate it, and how to apply it in a macroeconomic context.

With these elements you should be able to be shown the dynamic interaction between families, businesses, government, and the financial system (in a closed or an open economy). You will also know the operation of the main economic models and see how this interaction happens there.

In the classic model,

In the IS / LM and AD / AS model,

In the Solow model,

You may primarily reflect the effects of these models: you will know how the models are set up, what their basic elements, and how the economic cycle behaves in that model.

Afterwards you should be able to demonstrate a simulation of the operation of the models by setting up a thought experiment under certain scenarios. What happens if a specific economic event such as a change in policy, puts a dynamic in motion which affects all stakeholders in the economy? What are the results of that?

You can then also independently apply economic models to real economic problems, and the consequences of certain choices to study the long and short term, and to make a balance between the positive and negative effects on short- and long-term policy choices. You can study examples of economic phenomena and explain their kind in a structured way.

Grading

The final grade is composed based on the following categories:
Written Exam determines 100% of the final mark.

Within the Written Exam category, the following assignments need to be completed:

Written Exam with a relative weight of 100 which comprises 100% of the final mark.

Note: Written exam without oral continuation.

Additional info regarding evaluation

Not applicable

Allowed unsatisfactory mark

The supplementary Teaching and Examination Regulations of your faculty stipulate whether an allowed unsatisfactory mark for this programme unit is permitted.

Academic context