Economics

Macroeconomics 1

Module code: L1056
Level 4
15 credits in spring semester
Teaching method: Lecture, Seminar
Assessment modes: Multiple choice questions, Coursework

Macroeconomics 1 introduces core short-run and medium-run macroeconomics. First we study what determines demand for goods and services in the short run. We introduce financial markets and outline the links between financial markets and demand for goods. The Keynesian IS-LM model encapsulates these linkages. Second, we switch to the medium-term supply-side.

We bring together the market for labour to the price-setting decisions of firms in order to build an understanding of how inflation and unemployment are determined. Last, the supply side and the ISLM model are combined to produce a full medium-term macroeconomic model.

Module learning outcomes

• Have demonstrated a critical understanding of the principles of economics
• Be able to use the power of abstraction to focus upon the essential features of an economic problem and to provide a framework for the critical understanding and evaluation of the effects of policy or other exogenous events.
• Be able to analyse an economic problem or issue using an appropriate theoretical framework, and recognise its limitations.
• Have learned to understand the importance of, and be able to construct and develop, rigorous argument to help evaluate ideas.