Public University of Navarre



Academic year: 2012/2013 | Previous academic years:  2011/2012 
International Double Bachelor's degree in Economics, Management and Business Administration at the Universidad Pública de Navarra
Course code: 176304 Subject title: MACROECONOMICS I
Credits: 6 Type of subject: Mandatory Year: 2 Period: 1º S
Department: Economics
Lecturers:
GARCIA PRADO, ARIADNA MARÍA   [Mentoring ]

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Contents

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, capital 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.

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Descriptors

Economic theory, equilibrium, aggregate demand, aggregate supply, inflation, unemployment.

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General proficiencies

* GP01. Analytical capacity.
* GP04. Writing and speaking in English.
* GP07. Capacity for solving problems.
* GP09. Capacity for teamwork.
* GP11. International work.
* GP12. Information search from different sources.
* GP17. Autonomous learning.
* GP19. Creativity.

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Specific proficiencies

* SP01. Understand economic institutions as the result of theoretical or formal representations of modern economies.
* SP04. Use scientific tools and professional criteria to analyse economic problems.
* SP05. Write advising reports on local, national or international economic issues or on sectorial analysis.
* SP06. Write economic projects at regional, national or international level.
* SP10. Evaluate the implications of alternative economic policies and select those that better achieve the policy targets.

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Methodology

  • Three 100-minute lectures every two weeks. Single group.
  • One 100-minute practice session every two weeks. Students will be split up into two small groups
 
Methodology - Formative activities Hours attend them Hours do not attend them
A-1 Lectures 40 0
A-2 Practice session 15 0
A-3 Preparation and study of contents 0 30
A-4 Individual works 0 20
A-5 Works in group   10 
A-6 Preparation for exams, evaluations   25 
A-7 Exams and evaluation tests 5  
A-8 Individual tutorials   5 
Total 60 90

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Evaluation

Students will be evaluated mainly on the basis of continuous evaluation (60%), while the final exam will account for the remaining 40%. However, students will have a final exam (40%) and will have the chance to be reevaluated on 20% of the continuous evaluation. Thus, students will be able to be re-evaluated on 60% of their final qualification.

 

Aspect Criteria Tools Weight
Concepts of the subject  
  • Attendance
  • Intervention and contributions
  • Knowledge and Identification of key operational and theoretical concepts.
  • Appropriateness of content. 
  • Evaluation of current, original and quality critical reviews.
  • Identify at least one aspect of interest to professional practice.
  • Capacity for analysis and synthesis.
  • Application of knowledge in practice.
  • Creativity, innovation, improvement proposals.
     
  • Monitoring of attendance.
  • Record of  professor
  • Work in practical sessions.
  •  classroom exercises (individual or group)
  • homework assignments (individual or group)
 60%
Concepts of the subject
  • Identifying and understanding key concepts and operational knowledge of the subject.
  • Right Answers (on time, form and appropriateness of content).
  • Original and quality critical reviews.
  • Capacity for analysis and synthesis.

Final exam 40%

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Agenda

Syllabus

* 1. Introduction to Macroeconomics

o What Macroeconomics is about.
o The measurement and structure of the national economy.
+ Reading material: Blanchard (chapters 1 and 2).

* 2. Goods market equilibrium: the IS curve.

o Consumption and saving.
o Investment.
o The Saving-Investment diagram and the IS curve.
o Factors that shift the IS curve.
+ Reading material: Blanchard (chapter 3).

* 3. Financial markets equilibrium: the LM curve.

o What is money?
o The demand for money.
o The equality of money demanded and money supplied: the LM curve.
o Factors that shift the LM curve.
+ Reading material: Blanchard (chapters 4).

* 4. Goods and Financial markets: The IS-LM model.

o The IS-LM equilibrium.
o The Aggregate Demand (AD) curve. Factors that shift the AD curve.
o Short-run and long-run equilibria.
+ Reading material: Blanchard (chapter 5).

* 5. The labor market:

o Unemployment.
o Wage determinants.
o Price determinants.
o The natural rate of unemployment
+ Reading material: Blanchard (chapter 6).

* 6. Putting All Markets Together. The AS-AD Model

o The Aggregate Supply curve
o The Aggregate Demand Curve.
o Short term equilibrium
o Long term equilibrium.
o Fiscal and monetary policy in the AS-AD model.
+ Reading material: Blanchard (chapter 7)

* 7. The Natural Rate of Unemployment and The Phillips Curve

o Is there a trade-off? The Phillips curve.
o The expectations-augmented Phillips curve.
o Macroeconomic policy and the Phillips curve.
+ Reading material: Blanchard (chapter 8)

* 8. Inflation, Activity, and Nominal Money Growth

o Activity, unemployment and inflation.
o The effects of growth money
+ Reading material: Blanchard (chapter 9).

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Bibliography

Access the bibliography that your professor has requested from the Library.


Blanchar O. (2010). Macroeconomics (update edition) 5TH Ed. (International Edition) Prentice Hall

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Languages

English.

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