Economics

Macroeconomics 2

Module code: L1032
Level 5
15 credits in autumn semester
Teaching method: Seminar, Lecture
Assessment modes: Multiple choice questions, Coursework

The module is concerned with two main topics:

The Long Run is an introduction to how economies grow, gradually raising the standard of living, decade by decade. Once we have the basic analysis in place, we can begin to explain why there are such huge disparities in living standards around the world.

Expectations is a deepening of the behavioural background to modelling saving and investment decisions, emphasising the intrinsically forward-looking nature of saving and investment decisions and analysing the financial markets which coordinate these decisions.

Module learning outcomes

• Demonstrate understanding of the core concepts and key features of the macro economy as they relate to the medium run and long run, respectively
• Evaluate the consequences of economic shocks or policy interventions on macroeconomic outcomes—in particular, output, unemployment and inflation—based on the New Keynesian synthesis and the Solow growth model
• Recognise limitations of the theoretical framework used and identify uncertainties around such analyses
• Develop an analytical reasoning to help evaluate ideas, and demonstrate a capacity to provide economic arguments both verbally and in writing