SØK 1201 Macroeconomics I

SØK 1201 Macroeconomics I

Course code: 
SØK 1201
Department: 
Economics
Credits: 
7.5
Course coordinator: 
Jørgen Juel Andersen
Product category: 
Bachelor
Portfolio: 
Bachelor - Core Courses
Semester: 
2018 Autumn
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
One semester
Introduction

Macroeconomics is the study of a country's economy as a whole. The subject deals with phenomena such as sustained economic growth, cyclical fluctuations and economic crises, unemployment, inflation and balance of payments. Analysis of how the government can stabilize the macro-economic development through fiscal policy and monetary policy is very important in this field.

Macroeconomics I focuses on essential terms and relationships, and long run economic growth and development. Macroeconomics I is a foundation for the course Macroeconomics II.

Learning outcomes - Knowledge

After completing the course, students will have:

  • Acquired a precise vocabulary and understanding of macroeconomic theories and their empirical knowledge that explains the long-term growth processes, permanent (structural) unemployment, inflation and growth in other nominal sizes.
  • Acquired an overview of key population issues and gain insight into how macroeconomic growth processes related to the growth in physical capital and human capital, and productivity growth.
  • The accumulated knowledge of the properties of the aggregate production function, and how the Solow growth model can be applied to the dynamic analysis of economic growth in the long term.
  • Learned about sustainable economic growth that takes into account non-renewable natural resources and the environment.
  • Established knowledge of the long run consequences of fiscal policy.
Learning outcomes - Skills

After completing the course, students will be able to:

  • Explain the main macro-economic concepts, indicators and key objectives and instruments of Norwegian long-term economic policy.
  • Explain the fundamental distinction between the real economy on the one hand and money and other nominal variables on the other.
  • Distinguish between correct and incorrect statements related to normative and descriptive statements on the macroeconomic field.
  • Demonstrate good overview of the macroeconomic context and empirical patterns.
  • Understand the logical structure to the Solow model of capital accumulation and economic growth in the long term
  • Show understanding of the importance of technological change and innovation for economic growth, the fundamental institutional and political causes of high material wealth, and the long-run effects of fiscal policy.
  • Identify relevant economic indicators and other data from macroeconomic data sources to shed light on the macroeconomic development in Norway or other countries.
  • Determine which macroeconomic theory that are most relevant to discuss a specific, long-run issue.
  • Use the Solow model of capital accumulation and economic growth in mathematical form.
  • Conduct independent reasoning through applications of the Solow model of economic growth, and to use macroeconomic models in mathematical form to study effects of fiscal policy for economic growth and sustainability.
Learning Outcome - Reflection

Students must be ethically aware of the fundamental conflicts of interest and conflicting objectives that are linked to economic policy. They should consider a macroeconomic problem from different angles when it comes to different groups of economic interests. They will also get a critical sense of the declared political goals and aspirations may differ from the actual effects of economic policy in practice.

Course content

1. National accounts and economic indicators
2. Population development and population trends
3. Long-term economic growth and income distribution between labor and capital.
4. The Solow model of capital accumulation and economic growth in the long term.
5. Human capital, innovations and technological progress.
6. Productivity and efficiency.
7. The importance of political and economic institutions and policy for national income and wealth.
8. Income inequality and economic growth.
9. Natural resources, the environment and economic growth
10. Structural unemployment: frictions in employment market, as well as wage and price setting.
11. Monetary Neutrality: The distinction between the real economy and nominal variables such as money, credit, price levels and exchange rates.
12. Long run effects of fiscal policy.

Learning process and requirements to students

The course consists of 36 hours of lectures and 6 hours of exercises plenary review.

Software tools
No specified computer-based tools are required.
Qualifications

Higher Education Entrance Qualification.

Required prerequisite knowledge

This course requires prior knowledge of mathematics (MET 1180 Part I and II), statistics (MET 1190), business (BØK1121) and microeconomics (SEARCH 1101) or equivalent.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
SØK12011
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination every semester
100Yes3 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
Duration:3 Hour(s)
Comment:
Exam code: SØK12011
Grading scale:ECTS
Resit:Examination every semester
Exam organisation: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Teaching36Hour(s)
Review of assignments in plenary6Hour(s)
Self study131Hour(s)
Group work / Assignments24Hour(s)
Examination3Hour(s)
Expected student effort:
Workload activity:Teaching
Duration:36 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:6 Hour(s)
Comment:
Workload activity:Self study
Duration:131 Hour(s)
Comment:
Workload activity:Group work / Assignments
Duration:24 Hour(s)
Comment:
Workload activity:Examination
Duration:3 Hour(s)
Comment:
Sum workload: 
200

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.