Universidad Pública de Navarra - Nafarroako Univertsitate Publikoa

Module/Subject matter

Economic Analysis/Macroeconomics.

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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, 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.

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General proficiencies

Not applicable.

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Specific proficiencies

Not applicable.

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Learning outcomes

RA01: Understand the principles of economic analysis, from its microeconomic and/or macroeconomic perspective, in order to contribute to efficient resource allocation.

RA02: Analyze economic institutions as the result and application of theoretical or formal representations of how the economy works.

RA04: Identify the main instruments of public intervention and relate policy recommendations to economic, environmental, and social sustainability.

RA07: Understand the relationship between verbal, graphical, mathematical, and econometric analysis in the study of economics.

RA14: Evaluate the consequences of different action alternatives and select the best ones given the objectives.

RA15: Apply mathematical tools to synthesize complex economic problems.

RA18: Work in a team, being able to argue their proposals and validate or reasonably refuse the arguments of others.

RA19: Organize work, in terms of good time management, order, and planning.

RA20: Select and generate the necessary information for each problem, analyze it, and make decisions based on it.

RA21: Value ethical, social, and environmental commitment in professional practice.

RA22: Continue learning in the future independently, deepening the knowledge acquired or starting in new areas of knowledge.

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Methodology

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Evaluation

*Students who do not pass the course in the ordinary evaluation period may take the recovery test, which will consist of an exam of the complete syllabus. In this case, the grade obtained in the recovery exam will be the final grade in the subject, thus replacing the rest of the grades obtained during the course.

**To pass the course, the student must obtain a minimum grade of 4 out of 10 in the final exam and a minimum grade of 5 out of 10 in the total grade. In case the student does not reach the minimum grade required, the maximum final grade achieved could be 4,9 (FAILED).

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Agenda

1. The Goods Market

2. Financial Markets I

3. Goods and Financial Markets: The IS-LM Model

4. Financial Markets II: The Extended IS-LM Model

5. The Goods Market in an Open Economy

6. The Labor Market

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

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

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Bibliography

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

Textbook:

Blanchard, O. (2021), Macroeconomics (8th edition, Global Edition), Pearson.

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Languages

English.

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Location

Aulario building, Campus Arrosadia.

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