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Regular version of the site
Bachelor 2023/2024

# Introduction to Macroeconomics

Area of studies: Economics
When: 1 year, 3, 4 module
Mode of studies: offline
Open to: students of one campus
Language: English
ECTS credits: 6
Contact hours: 72

### Course Syllabus

#### Abstract

This is an introductory macroeconomics course designed for students majoring in economics and management.

#### Learning Objectives

• Mastering the basic principles of macroeconomic analysis.

#### Expected Learning Outcomes

• Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production, Accounting and Economic Profit, define Explicit and Implicit Costs. Calculate and graph short-run and long-run costs of production.
• define and analyse the determinants of business cycles, long run economic growth, unemployment, inflation; use and apply a wide range of economic models to analyse contemporary and historical macroeconomic events, and formulate and propose appropriate macroeconomic policies; be capable to work in a team; be prepared for further units which require a knowledge of macroeconomics;
• ILO 2: formulate the real world phenomena at the aggregate level in the language of macroeconomic modelling using graphic analysis of IS-MP, AD-AS and Solow models and simple algebra
• Describe the Solow model of economic growth. Illustrate the steady state levels of capital and output per effective worker. Explain the out-of equilibrium dynamics of capital and output per effective worker.
• To be able to apply theoretical approaches to explanation of gender inequality in the labor market and household
• to define aggregate demand (AD), to derive the AD curve and to explain its main properties; to interpret the equilibrium in the AD-AS model and the process of its restoration; to determine the types of AD and AS shocks and to explain intuitively the mechanism and the consequences of each type of shocks in the short run, in the medium run and in the long run
• Use the AD-AS model to explain periods of growth, recession, and expansion
• Identify the equilibrium in AD-AS model
• analyze labor market flow using labour statistics
• Knowledge of macroeconomic approaches.
• Knowledge of System of national accounts
• Flow and stock variables
• Production, income and expenses methods for calculating GDP.
• Macroeconomic production function
• Dynamic labor market
• Acemoglu classification
• Blacksmith's Mystery.
• Tobin's q-coefficient
• Barro-Ricardo equivalence. Non-Ricardian and Ricardian consumers
• The concept of an asset
• Quantity Theory of Money: Fisher's Identity and the Cambridge Equation.
• LM curve for money supply targeting and interest rate targeting. Shifts of the LM curve.
• Classification of cyclic indicators.
• Macroeconomic theory of the short run: key premises. Short-term macroeconomic equilibrium in the IS-LM model with inflexible prices.
• urves IS and LM in an open economy. exchange rate regimes.

#### Course Contents

• 1. Introduction. Main macroeconomic indicators
• 2. Potential output
• 3. Consumption, saving and investment. Desired Capital Stock Model and Intertemporal Choice Model
• 4. Economic growth
• 5. Aggregate demand in a closed economy and fiscal policy. IS Model
• 6. Money and monetary policy. LM Model
• 7. Business cycles. IS-LM Model
• 9. Fundamentals of an open economy

#### Assessment Elements

• Homework
A full-length homework assignment, containing tasks of intermediate and advanced levels of complexity, is compiled based on the materials of the current week's seminar.
• Final exam
An examination containing tasks based on the materials of the whole course
• Midterm
An examination containing tasks based on the materials of the first module.
• Quiz
Small tests at the seminar on the material of the previous seminar
• Class work Pre-HW

#### Interim Assessment

• 2023/2024 4th module
см.

#### Recommended Core Bibliography

• Macroeconomics, Abel, A.B., 2011
• N. Gregory Mankiw. (2020). PDF Macroeconomics 10th Edition by N. Gregory Mankiw Download. https://doi.org/10.5281/zenodo.3752461