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EC239: Economics 2: Macroeconomics

15 CATS - Department of Economics

Principal Aims

To enable students to develop a deeper understanding of macroeconomic concepts introduced in first-year analysis.

To introduce students to new concepts in intermediate macroeconomic analysis.

To develop students’ understanding of more complex macro concepts, such as the role of expectations, political business cycles and the open economy. To provide students with an understanding of the application of macroeconomics to policy.

To equip students with a range of appropriate analytical skills, including descriptive, graphical and mathematical methods; and

To develop the capacity to apply analytical techniques to real world problems.

Principal Learning Outcomes

By the end of the module the student should be able to understand key concepts and principles in intermediate macroeconomics. Apply rigorous knowledge of theoretical models which underlie economic analysis. Understand the uses, applications and limitations of theoretical models. Demonstrate knowledge of macroeconomic policies and how macroeconomic theory can be used to support such policies. Abstract and simplify economic problems through the application of theoretical models.


Macroeconomics. The exact topics may vary, but the syllabus will typically include:

• The unemployment – inflation relationship

• Understanding the use and effectiveness of monetary policy, through use of ISLM.

• The role of expectations in the economy

• The importance and operation of financial markets and their relation to the macroeconomy

• Political business cycles

• The time-inconsistency problem

• Development of the open economy


Pre or Co-requisites
EC106 (for MORSE students) or EC136 or EC131 and EC229 with a mark of 60% in each plus passes in IB121 and IB122.
LA99 students must take EC204 instead
Part-year Availability for Visiting Students
Not available on a part-year basis


Assessment Method
Coursework (20%) + 1.5 hour exam (80%)
Coursework Details
One assignment (2000-word essay) (20%)
Exam Timing

Exam Rubric

Time Allowed: 1.5 hours.

Answer BOTH questions from Section A (40 marks total) and ONE question from Section B (60 marks each). Answer Section A questions in one booklet and Section B 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.

Reading Lists