Course code: 176304 | Subject title: MACROECONOMICS I | ||||
Credits: 6 | Type of subject: Mandatory | Year: 2 | Period: 1º S | ||
Department: Economics | |||||
Lecturers: | |||||
CASARES POLO, MIGUEL (Resp) [Mentoring ] |
This course introduces the theory of modern macroeconomics with attention focused on the determination of aggregate variables in the short-run such as income, employment, prices, and the interest rate. The first part of the course is devoted to studying the private sector behaviour in goods markets, asset markets, and money markets in order to build foundations for the Aggregate Demand (AD) determination that embodies the IS-LM model. The labour market is presented next for the endogenous construction of the Aggregate Supply (AS) curve. Next, both the Keynesian and classical frameworks are introduced for the macroeconomic analysis and are represented in an AD-AS diagram. A central theme in this part of the course will be to understand the powers and limitations of macroeconomic policies (fiscal policy and monetary policy) in stabilizing the business cycle. Finally, the Phillips curve and the role of expectations are shown to illustrate the possible tradeoffs between policy targets such as inflation and unemployment.
Economic theory, equilibrium, aggregate demand, aggregate supply, inflation, unemployment.
Solve market-clearing equilibria.
Obtain the AD curve from the goods market and asset market equilibrium conditions.
Obtain the AS curve from labor market assumptions and a production technology.
Examine alternative economic policies in their effects on income, prices, interest rates and employment.
Learning activities | On-class Hours | Off-class hours |
A-1Lectures | 40 | 0 |
A-2 Practice sessions | 15 | 0 |
A-3Reading | 0 | 10 |
A-4Assignments | 0 | 30 |
A-5 Study | 0 | 45 |
A-6 Exams | 5 | 0 |
A-7 Individual tutorials | 0 | 5 |
Total | 60 | 90 |
Activities | Weight % |
HOMEWORKS, QUIZZES, CLASS TESTS, PARTICIPATION (no substitutable in second-attempt exam) | 35% |
MID-TERM EXAM (substitutable in second-attempt exam) | 25% |
FINAL EXAM (substitutable in second-attempt exam) | 40% |
Chapter 1. A Tour of the World
Chapter 2. A Tour of the Book
Chapter 3. The Goods Market
Chapter 4. Financial Markets
Chapter 5. Goods and Financial Markets: The IS-LM Model
Chapter 6. The Labor Market
Chapter 7. Putting All Markets Together: The AS/AD Model
Chapter 8. The Phillips Curve, the Natural Rate of Unemployment, and Inflation
Access the bibliography that your professor has requested from the Library.
Blanchar O. and David W. Johnson (2013). Macroeconomics, 6th edition, Prentice Hall.