Course syllabus - Macroeconomic Analysis

Objectives

The aim of the course is to use macroeconomic concepts and methods to understand and analyze how the economy works on an aggregate level and how economic policy affects economic development. The emphasis is on how the economy functions in the short time horizon, e.g. business cycles and stabilization policy.

Learning outcomes

After completing the course, the student shall be able to
- describe how markets for goods, labor, capital, credits and currency interact in macroeconomic models to determine production, price level, unemployment, interest rates, and exchange rates in the short and long run
- describe how these variables are connected and vary over the business cycle
- account for how exogenous changes in economic variables influence the development of the business cycle
- compute central variables such as GDP, consumption and investments in simple macroeconomic business cycle models
- describe the aims and means of economic policy, such as stabilization policy
- compute the effects of economic policy, particularly fiscal and monetary policy, in simple models.

Course content

Macroeconomics treats the working of the economy on an aggregate level, i.e. a nation, a wider area of economic activity such as the EU, or even the world as a whole. The course uses the basic macroeconomic concepts and measures of economic activity such as the national accounts for GDP, consumption, investment and international trade, and measures for unemployment, inflation etc. to analyze the development of the national and international economy, with an emphasis on the short time horizon. These concepts are used to analyze business cycles and their development, and the adjustment of the economy to long run equilibrium. Markets of special importance for macroeconomic fluctuations, such as the labor market and financial markets, are covered. International trade and international finance are treated with an emphasis on the perspective of a small open economy such as Sweden. Economic stabilization policy is discussed in terms of goals, means and effects, as well as the interaction between fiscal and monetary policy.

Tuition

Teaching is conducted in the form of lectures and applied demonstrations and exercises. The exercises, which focus on applying and solving economic models, may be held in connection with the lectures or as separate application seminars.

Requirements

English B, Mathematics C or English 6, Mathematics 3b/3c.

Examination

Written examination (TEN1), 6 credits, marks Passed (G) or Passed with distinction (VG)
Exercise (ÖVN1), 1,5 credits, marks marks Passed (G)

A student who has a certificate from MDU regarding a disability has the opportunity to submit a request for supportive measures during written examinations or other forms of examination, in accordance with the Rules and Regulations for Examinations at First-cycle and Second-cycle Level at Mälardalen University (2020/1655). It is the examiner who takes decisions on any supportive measures, based on what kind of certificate is issued, and in that case which measures are to be applied.

Suspicions of attempting to deceive in examinations (cheating) are reported to the Vice-Chancellor, in accordance with the Higher Education Ordinance, and are examined by the University’s Disciplinary Board. If the Disciplinary Board considers the student to be guilty of a disciplinary offence, the Board will take a decision on disciplinary action, which will be a warning or suspension.

Grade

Pass with distinction, Pass, Fail

Interim Regulations and Other Regulations

The course overlaps 7,5 credits with:
NAA101 Macroeconomics 
NAA127 Macroeconomi 2 
3,5 credits with:  
NAA117 Macroeconomic Analysis  
NAA112 Macroeconomic Analysis  
NAA108 Macroeconomics
NAA116 Macroekonomics 
2 hp med  
NAA119 International economics 
NAA110 International economics