SØK 3525 Macroeconomics
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 economy through fiscal and monetary policy are particularly important in macroeconomics.
After completing the course, students shall know:
- Different macroeconomic concepts and important relationships between macroeconomic variables.
- How macroeconomic indicators is used to identify turning points for the business cycles.
- The central factors for economic growth and the concept of sustainable growth.
- Key objectives for the economic policy and how the central policy makers execute the economic policy.
- How digitalization and technological development may affect labor demand
- How the implementation of different policies affects a small open economy with flexible exchange rates.
- How the Norwegian economy is affected by international conditions.
- Important assessments for the implementation of monetary and fiscal policy.
- The difference between descriptive and normative statements.
- Long-term effects from fiscal policy on households disposable income and consumption.
After completing the course, students will:
- Be able to decide which macroeconomic theory that is the most relevant to discuss a given macroeconomic problem.
- Understand how to collect and utilize relevant macroeconomic data and indicators assess the present domestic business cycle.
- Be able to discuss basic macroeconomic relationships and have obtained a critical sense when it comes to identify correct and wrong statements about the macroeconomy and macroeconomic policy.
- Know how to discuss changes in macroeconomic policies using both formal mathematical and graphic models.
- Be able to explain the difference between the real economy and nominal variables.
- Know how to identify possible conflicts between the main goals of the fiscal policy.
After taking this course the students should be ethically conscious about the conflicts of interest and inherent goal conflicts and trade-offs in macroeconomic policy. They should be aware of the importance of sustainable use of the society’s resources. The students should be able to look at a macroeconomic policy issue from different perspectives in regard to the interests of different groups in society. They should also have developed a critical attitude making them conscious of the difference between political ambitions behind announcements of goals and the real effects of macroeconomic policies in practice.
- Introduction to macroeconomics
- National accounts and economic indicators
- Population development and the wealth of nations
- Productivity, economic growth and inequality
- Labor market, institutions and unemployment
- Money, credit and exchange rates
- Business cycles
- Asset bubbles and financial crisis
- Inflation, expected inflation and output gap
- Monetary- and fiscal policy
- Real interest rates and savings
The course consists of 39 hours of lectures and 6 hours of plenary exercises
Where the course is delivered as an online course, the lecturer will, in collaboration with the study administration, arrange an appropriate combination of digital learning resources and activities. These activities will correspond to the stated number of teaching hours delivered on campus. Online students are also offered a study guide that will provide an overview of the course and contribute to course progression. The total time students are expected to spend completing the course also applies to online studies.
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
This course requires prior knowledge in mathematics (MET 2910), statistics (MET 2920), and microeconomics (SØK 3520).
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Examination every semester
|Form of assessment:||Written submission|
|Support materials:|| |
|Resit:||Examination every semester|
Feedback activities and counselling
Prepare for teaching
Group work / Assignments
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.