PRINCIPLES OF MACROECONOMICS

SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2L122555
Module Leader Thomas Dudley
School Glasgow School for Business and Society
Subject Economics
Trimester
  • A (September start)

Pre-Requisite Knowledge

Level One module in Economics or Political Economy

Summary of Content

The primary objective of the module is to develop an understanding of macroeconomic theory to intermediate level, enabling students to coherently analyse issues that confront modern macroeconomies and to critically evaluate the conduct of macroeconomic policy. This requires the sequential development of an analytical model within which students can appreciate the determinants of the major economic aggregates and how they interact with each other. The principal variables that the model seeks to explain and integrate are output, unemployment, inflation, wage rates, consumption, investment, taxation, government spending, imports, exports, interest rates and exchange rates. The model of the economy will be used to analyse current economic issues and to highlight alternative macroeconomic schools of thought. Summary of how PRME-related issues / topics are covered in this module: Provides insight into the workings of the macro-economy and the potential impact of macroeconomic policy on the welfare of economic actors: consumers, workers and firms/organisations [Principles 1-4]

Syllabus

-360b7 Review of the Circular Flow of Income -360b7 Aggregate Demand: Consumption, Investment, Government Expenditure, Exports, Imports, concept of the Multilier b7 Equilibrium output/employment, Inflationary/Deflationary gaps, Introduction to Fiscal Policy b7 The Money Market and Transmission Mechanisms: Demand for Money, Supply of Money, Interest Rate Determination, Introduction to Monetary Policy b7 Aggregate Supply in the Short and Long Run, Alternative theories of aggregate supply b7 Macroeconomic Equilibrium, Adjustment Mechanisms in the Short and Long run, Keynesian and Monetarists view on unemployment, Problems of demand management b7 The Phillips Curve, NRU, NAIRU, Inflation and Unemployment, Short - and Long-run Phillips Curves, Inflationary expectations, Inflationary Policy b7 Supply Side Policies, Taxation and Labour Supply, other Supply Side Measures b7 Trade, Balance of Payments and Exchange Rates, Gains from Trade. b7 Disequilibrium and Balance of Payments adjustment, Exchange Rate Regimes and Macroeconomic Management

Learning Outcomes

On successful completion of this module, the student should be able to:" Demonstrate a substantive working knowledge of macroeconomic principles " Explain and analyse the determinants of major macroeconomic aggregates [PRME Principle 4]" Analyse the interdependencies between macroeconomic aggregates in the context of a theoretical model of the economy [PRME Principles 1-4]" Critically evaluate the principal differences between alternative macroeconomic schools of thought " Use a conceptual model of the economy to formulate views and opinions on current macroeconomic problems and policies [PRME Principles 1-4]

Teaching / Learning Strategy

A series of weekly lectures provides a formal, structured guide to fundamental macroeconomic principles and theory. The lecture programme introduces material and provides a framework for students to develop their understanding of theory. Each student will participate in two hours of seminars per week. The seminar programme will support the lecture and operate in a variety of formats providing students with appropriate opportunities to consolidate and evaluate material encountered in lectures, their reading and in web-based directed study. Every seminar will devote some time to dealing with difficulties identified by students themselves. The majority of seminars will focus on question sheets, topics for discussion and web-based exercises that are closely tied to the lecture programme and which students must attempt before coming to the seminar. Extensive use of the GCU-Learn VLE will be made to support the module. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission.

Indicative Reading

-567 Books and articles: -360b7 Begg D., Fisher S., Vernasca, G. and Dornbusch R., Economics , 10th Edition 2010 McGraw-Hill -360b7 Griffiths A. & Wall S., Applied Economics , 12th Edition, 2011, Pearson b7 Mankiw, N G, Macroeconomics , Eighth Edition, 2013, Worth b7 Parkin M., Powell M. and Mathews K., Economics , 8th Edition 2012 Addison-Wesley Online sources

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: Economic literacy, critical, analytical and problem-solving skills, Research Skills, IT skills, Time Management, Ability to learn independently By the end of this module students will have gained competence in the following key areas: -360b7 Economic literacy b7 Analytical and critical thinking skills b7 Problem solving skills b7 Research Skills b7 Communication skills (oral and written) b7 Time management skills b7 Ability to learn independently

Module Structure

Activity Total Hours
Seminars (FT) 22.00
Assessment (FT) 30.00
Independent Learning (BL) 124.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 60.00 35% Unseen Examination
Course Work 01 n/a 40.00 35% Essay 1500-2000 words