GRA 6634 Advanced Macroeconomics

GRA 6634 Advanced Macroeconomics

Course code: 
GRA 6634
Course coordinator: 
Annika Bacher
Course name in Norwegian: 
Advanced Macroeconomics
Product category: 
MSc in Business - Economics
2023 Autumn
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

Macroeconomics is the study of the economy as a whole. The course offers an introduction to macroeconomics at an advanced level. It provides the students with analytical skills and applied insights to understand important macroeconomic variables such as consumption, investment, productivity, and aggregate output – domestically as well as internationally. Throughout the course students will acquire insight into consumption and saving decisions, economic growth, sustaintability, inequality, international income convergence, and investment. Attention is paid to developing digital tools to help analyzing and understanding economic models.

Learning outcomes - Knowledge

By the end of the course, students will

  • know the main theories of consumption and investment, and their empirical relevance. Important topics include the permanent-income hypothesis, consumption based asset pricing and the Q-theory of investment.
  • understand the tradeoffs involved in consumption and investment and how the tradeoff depends on income, productivity, interest rates, and uncertainty.
  • know the main theories of economic growth.
  • be familiar with the main determinants of economic growth and how discounting affects costs and benefits of dealing with long-term challenges such as climate change.
  • understand what is needed to get sustained economic growth.
  • understand trends in income inequality.
Learning outcomes - Skills

Students will be able to:

  • apply intertemporal macroeconomic models to analyze economic problems.
  • develop basic general equilibrium macroeconomic models.
  • compare calibrated models with data.
General Competence

This course should lead students to reflect about the forces that influence the economy as a whole. What determines consumption and investment? Why do some countries grow faster than others? Furthermore, this course prepares students for more advanced academic work. It is a prerequisite for both GRA 6639 Business Cycles and GRA 6631 Macroeconomic Policy.

Course content

The course covers the following topics:

  • Consumption and saving
  • Investment
  • Solow growth model
  • Neoclassical growth model
  • Inequality, sustainability
Teaching and learning activities

Complementary learning tools will be used during the course. There will be tutorials with exercises in addition to lectures. The course will include a joint session with GRA 6626 Decisions, Strategy and Information, during which students will analyze consumption theory problems under both a micro and macro perspective, while practicing with simulation methods.

Software tools
Additional information

It is the student’s own responsibility to obtain any information provided in class.


All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.


Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Form of assessment:
Written submission
Exam code:
GRA 66342
Grading scale:
Grading rules:
Internal examiner
Examination when next scheduled course
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Individual Written examination under supervision
Exam category:Submission
Form of assessment:Written submission
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
Duration:3 Hour(s)
Comment:Written examination under supervision
Exam code:GRA 66342
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
36 Hour(s)
Seminar groups
6 Hour(s)
Student's own work with learning resources
80 Hour(s)
Prepare for teaching
30 Hour(s)
Group work / Assignments
10 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 6 ECTS credits corresponds to a workload of at least 160 hours.