Course syllabus - Macroeconomic Principles

Objectives

The aim of the course is to introduce macroeconomic concepts, methods and models, and to use them to understand and analyze how the economy works on an aggregate level and how economic policy is implemented. The emphasis is on how the economy functions in the long and medium time horizon, i.e. macroeconomic equilibrium as an average over the business cycle and economic growth.

Learning outcomes

After completing the course, the student shall be able to
- describe the economic statistical data, with an emphasis on the central variables in the national accounts
- perform simplified computations within the framework of the national accounts, such as computing GDP
- describe the production technology of an economy and use it to determine equilibrium production and the distribution of national income in the long run
- describe how markets for goods, labor, capital, credits and currency interact in macroeconomic models to determine long run equilibrium levels of production, price level, unemployment, interest rates, and exchange rates
- compute central variables such as GDP in simple macroeconomic models
- describe and compute how economic growth is affected by other economic variables
- describe the aims and means of economic policy
- compute the effects of economic 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 introduces 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. These concepts are used to analyze the development of the national and international economy. The long run analysis treats how production technology and the available capital stock and labor force combine to determine equilibrium levels of important economic variables such as production and growth. Markets of special importance for macroeconomic performance, such as the labor market and financial markets, are covered. International trade and international finance is treated with an emphasis on the perspective of a small open economy such as Sweden.

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

Studies in Mathematics of 3 years from Upper Secondary School with a Science profile and a TOEFL test result, minimum score 575 with a TWE score of at least 4,5 (PBT) or 90 with a TWE score of at least 20 (iBT)/IELTS test result with an overall band score of minimum 6,5 and no band score below 5,5.

Examination

Written examination (TEN1). 7,5 credits, marks Fail (U), Passed (G) or Passed with distinction (VG)

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
NAA126 Macroeconomics 1 

4 credits with: 
NAA117 Macroeconomic Analysis 
NAA112 Macroeconomic Analysis 
NAA116 Macroeconomics
NAA108 Macroeconomics

2,5 credits with: 
NAA119 International Economics
NAA110 International Economics
NAA113 Trade Theory and International Finance