Public University of Navarre

Academic year: 2019/2020 | Previous academic years:  2018/2019 
International Bachelor's degree in Management and Business Administration
Course code: 174304 Subject title: MACROECONOMICS
Credits: 6 Type of subject: Mandatory Year: 2 Period: 1º S
Department: Economía

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Module/Subject matter




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.


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.


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.


Learning outcomes

Macroeconomic models to determine equilibrium income.

Economic policies (monetary policy, fiscal policy and supply-side policies).

The AD curve, the AS curve and the price adjustment mechanism in the medium run.

Expectations, the rate of inflation and unemployment.



  • Three lectures every two weeks. Single group.
  • One practice session every two weeks. Students will be split up into two small groups (20-25 students)
Learning activities On-class Hours Off-class hours
A-1 Lectures 40  
A-2 Practice sessions 15  
A-3 Reading   10
A-4 Assignments   30
A-5 Study   45
A-6 Exams 05  
A-7 Individual tutorials   05
Total 60 90



  Weight  Second-call replaceable
Practice 35% NO
Midterm exam 25% YES
Final exam 40% YES

Practice consists of the evaluation in the seminar sessions and it may come from differentiated items (problem sets, other individual or group homework, presentations, in-class quizzes or individual exercises, etc.)

A minimum mark of 4/10 in either the final or the retake exam is required to pass the course.

Those students who do not take any of the two final exams will obtain the overall grade "NO PRESENTADO".



Chapter 1. A Tour of the World

Chapter 2. A Tour of the Book

Chapter 3. The Goods Market

Chapter 4. Financial Markets I

Chapter 5. Goods and Financial Markets: The IS-LM Model

Chapter 6. Financial Markets II; The Extended IS-LM Model

Chapter 7. The Labor Market

Chapter 8. The Phillips Curve, the Natural Rate of Unemployment, and Inflation

Chapter 9. From the Short to the Medium Run: The IS-LM-PC Model



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

Macroeconomics (2013), 6th edition, Olivier Blanchard and David W. Johnson. Pearson.

Macroeconomics (2017), 7th edition, Olivier Blanchard. Pearson.






Aulario building, Campus Arrosadia.