Module Catalogue 2024/25

Pre Requisite Comment

N/A

Co Requisite Comment

Semester 1 material in Economic Modelling provides fundamental building blocks for this Semester 2 module – Macroeconomic Analysis. The learning undertaken in Semester 1 of Economic Modelling needs to be undertaken in advance of pursuing this Semester 2 module.

Aims

To equip the student with intermediate-level macroeconomic concepts, and develop students' problem-solving abilities in the context of macroeconomics.

This is the core second-year module in macroeconomic analysis. It is a pre-requisite for several final-year modules in Economics. At a broad level, it is the study of the economy as a whole; and the module focuses on developing skills in macroeconomic analysis that could be applied to any economy in the world. A key emphasis is placed on understanding the relevance of different frameworks for different contexts. The concepts of short run, medium run and long run are central to this process; as is the distinction between open and closed economy modelling. There is also an emphasis on helping students understand contemporary policy-making issues. For example, students have the opportunity to develop knowledge and understanding of a (medium run) macroeconomic framework typical of that used in central banks to support contemporary monetary policy design. The material builds on principles of macroeconomics typically covered in Stage 1 studies and Semester 1 material in the co-requisite module Economic Modelling, but it is conducted at greater depth and with a much greater reliance on analysis, mainly diagrammatic, but with some mathematics. It is a core module, as it covers the economic techniques that are essential to modern economic analysis at Stage 3 of economics programmes.

Outline Of Syllabus

The demand side – recap of the IS curve.
The supply side – the labour market and unemployment.
The 3 equation model: IS-PC-MR.
Modelling expectations in the 3 equation model.
Money and banking in the 3 equation model.
The open economy.

Intended Knowledge Outcomes

1.       Explain the 3 equation model in closed and open economies using equations and diagrams
2.       Analyse the reaction of the economy to macroeconomic shocks using the 3 equation model
3. Extend the 3 equation model to incorporate different forms of expectation formation and a banking system
4.       Analyse the functioning of the open economy and compare it to the functioning of the closed economy.

Intended Skill Outcomes

Apply complex knowledge to practical situations
Understand and use Macroeconomic terminology to explain technical information
Active learning – through presentations and checking each other's work
Problem solving
Oral and written communication through presentations
Global awareness

Teaching Rationale And Relationship

Lectures provide an in-depth treatment of the core course material. They provide the structure through which learners develop familiarity with and understanding of macroeconomic modelling.

Seminars facilitate small group interaction with peers and the seminar leader to reinforce learning: seminar worksheets structure the student learning activity prior, during and after each seminar. The seminars will support learners to identify appropriate models for the analysis of particular contexts and undertake macroeconomic analysis.

Seminars provide each learner with the opportunity to obtain feedback on their understanding to date; and resources made available after seminars provide material for self-assessment of student understanding.

Drop-in/Surgery deals with specific problems experienced by students and provide a forum for consolidation of understanding. They also include a pre assessment clinic.

Private study facilitates review and understanding of lecture material and problem sets.

Assessment Rationale And Relationship

The unseen examination is designed to encourage study and test understanding across a range of macroeconomic topics. Student learning and development of analytical skills tends to build and mature over time. End of session summative assessment should give learners maximum opportunity to develop their analytical skills before being formally assessed – and will test their understanding on exit from the programme of learning.
The formative assessment is directly linked to the exam. Students are provided with a set of problems to solve before the seminar. During the seminar they share their answers with the rest of the class and receive feedback from the seminar leader and other students.

General Notes

N/A