To provide students with the opportunity to understand the core theoretical models used in macroeconomics, for both closed and open economies, and how to use them to enhance their comprehension of real-world macroeconomic experiences, especially involving macroeconomic policy.
Principal Learning Outcomes
By the end of the module the student should have an understanding of a wide variety of theoretical models commonly used in macroeconomics; an ability to present clearly and methodically in their own words, also using equations and diagrams as appropriate; an understanding of the relationship between different models, and how to apply them in the analysis of recent macroeconomic episodes and policy discussions affecting actual economies.
The module will typically cover the following topics:
1. Flex-Price Models and Policy Issues (Closed Economy). Price-setting. Investment.
Consumption. Growth. Wage-setting and Unemployment. Money and Inflation.
2. Sticky-Price Models and Monetary Policy (Closed Economy). (Term 1)
3. Fiscal Policy. Business Cycles. Economic Policy. Financial Markets.
4. Open Economy and Policy Issues. International Trade. International Financial
Markets. Exchange Rate Systems. Monetary unions. (Term 2)
- Core Module
- L100 - Year 2, L116 - Year 2, L1P5 - Year 1, L1PA - Year 1
- Pre or Co-requisites
- EC108 or EC107 with a mark of 65% plus guided reading in summer vacation
- May not be taken by EPAIS, PPE, WBS and GL11 students
- Part-year Availability for Visiting Students
- Available in the Autumn term only (1 x test – 12 CATS) and in the Spring term only (1 x test -12 CATS) and in the Autumn and Spring terms together (2 x tests - 24 CATS)
- Assessment Method
- Coursework (20%) + 3 hour exam (80%)
- Coursework Details
- Two 50 minute tests (worth 10% each)
- Exam Timing
Time Allowed: 3 hours.
Answer ALL TEN questions in Section A (3 marks each), ALL FOUR questions in Section B (10 marks each) and ONE of the TWO questions in Section C (30 marks). Answer Section A questions in one booklet, Section B questions in a separate booklet; and Section C questions in a separate booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.