SØK 3432 Macroeconomics

SØK 3432 Macroeconomics

Course code: 
SØK 3432
Course coordinator: 
Terje Synnestvedt
Hans-Martin Straume
Course name in Norwegian: 
Product category: 
Bachelor - Common Courses
2017 Autumn
Active status: 
Teaching language: 
Course type: 
One semester

Macroeconomics is the study of the economy as a whole. It deals with phenomena such as long-run economic growth, business cycles, unemployment, inflation, and deficits on the balance of payments. Analyses on how governments and central banks can influence the macroeconomy through fiscal and monetary policy are particularly important in macroeconomics.

Learning outcomes - Knowledge

An important goal of this course is to familiarise students with important macroeconomic concepts, indicators, and relations, and to give students insights into macroeconomic theories (with corresponding empirical knowledge) of long-run economic growth processes, structural unemployment, inflation and other nominal variables, and business cycles. This will help you to understand how small, open economies are affected by the international economy, and important economic policy issues confronting governments and central banks. Another goal is to equip students with sufficient knowledge to understand theories and macroeconomic models that explain how fiscal and monetary policy, such as inflation targeting, can be used to influence the macroeconomy.

After taking this course you should understand and be able to explain important macroeconomic concepts, indicators and the most common policy targets and instruments of fiscal and monetary policy in advanced economies. You are expected to understand the crucial distinction between real and nominal variables and concepts. You should also be able to distinguish wrong statements in macroeconomics from correct ones, as well as descriptive statements from normative ones. You should also have acquired a good overview of macroeconomic relations and empirical knowledge. Finally, you should understand the logical structure of basic macroeconomic growth models and elementary models of business cycles and inflation.

Learning outcomes - Skills

After taking this course you should be able to find relevant economic data and indicators from respectable data sources in order to describe the macroeconomic situation and recent history of a particular country. You should also be able to decide which macroeconomic theory or model that is most relevant for a particular policy issue. Finally, you should be able to apply basic models of long-run growth, business cycles and inflation to draw logical conclusions about the effects of changes in crucial parameters and policy instruments.

Learning Outcome - Reflection

After taking this course you should be ethically conscious about the conflicts of interest and inherent goal conflicts and trade-offs in macroeconomic policy. You should be able to look at a macroeconomic policy issue from different perspectives in regard to the interests of different groups in society. You should also have developed a critical attitude making you conscious of the difference between political ambitions behind announcements of goals and the real effects of macroeconomic policies in practice.

Course content
  1. National accounts and economic indicators
  2. Economic growth and the wealth of nations
  3. The labor market and structural unemployment
  4. Money, prices and exchange rates in the long run
  5. Consumption and investment
  6. Aggregate demand, business cycles and the short-run effects of monetary and fiscal policy
  7. Asset bubbles and financial instability
  8. Nominal and real exchange rates
  9. Long-run effects of fiscal policy.
Learning process and requirements to students

The course consists of lectures and exercises. 

An important part of the learning process consists of lectures in class. In addition there are mandatory exercises. Seven sets of coursework requirements will be posted on It's learning. Five of these have to be approved in order for the student to be allowed to take the final exam. Answers to the work requirements should be posted electronically through It's learning. Feedback will be given electronically or in class.

When course is delivered online, lecturer, in cooperation with the Academic Servises Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.

Software tools
No specified computer-based tools are required.
Additional information

Re-sit examination
Students that have not gotten approved the coursework requirements, must re-take the exercises during the next scheduled course.

Students that have not passed the written examination or who wish to improve their grade may re-take the examination in connection with the next scheduled examination.


Higher Education Entrance Qualification.

Required prerequisite knowledge

No particular prerequisites.

Mandatory courseworkCourseworks givenCourseworks requiredComment coursework
Mandatory53The students must get approved three (3) out of five (5) coursework requirements in order to take the exam. Information about deadlines will be given at the start of the term.
Mandatory coursework:
Mandatory coursework:Mandatory
Courseworks given:5
Courseworks required:3
Comment coursework:The students must get approved three (3) out of five (5) coursework requirements in order to take the exam. Information about deadlines will be given at the start of the term.
Exam category: 
Form of assessment: 
Structured test
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
3 Hour(s)
Exam code: 
Grading scale: 
Examination every semester
Exam organisation: 
Ordinary examination
Total weight: 
Student workload
36 Hour(s)
Feedback activities and counselling
6 Hour(s)
Feedback on work requirement in class
Prepare for teaching
131 Hour(s)
Group work / Assignments
24 Hour(s)
3 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.