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Durham University

Faculty Handbook 2022-2023

Module Description

Please ensure you check the module availability box for each module outline, as not all modules will run each academic year.

Department: Economics and Finance

ECON2011: MACROECONOMICS

Type Open Level 2 Credits 20 Availability Available in 2022/23 Module Cap Location Durham

Prerequisites

  • Principles of Economics (ECON1011) and EITHER Economic Methods (ECON1021) OR Calculus I (MATH1061) AND Linear Algebra I (MATH1071) AND Probability I (MATH1597) AND Statistics I (MATH1617)

Corequisites

  • None.

Excluded Combination of Modules

  • None.

Aims

  • To provide students with the theoretical instruments for analysing the general equilibrium of an economy at an aggregate level, both in the short run, with a static model, and in the medium to long run, with a dynamic model.
  • Real world policies and examples are introduced whenever possible to provide the necessary applied counterpart to the theoretical model being developed.

Content

  • Introduction to Income Determination: the Multiplier.
  • Demand-Side Equilibrium: Income and the Interest Rate.
  • An Introduction to Monetary and Fiscal Policy.
  • Demand and Supply in Labour Market.
  • Supply-side Equilibrium: Output and the Price Level.
  • Equilibrium in the Static Model.
  • Monetary, Fiscal and Incomes Policy.
  • Search, Wage Rigidity and Unemployment.
  • Rational Expectations and Demand Policy.
  • The Foreign Sector and the Balance of Payments.
  • Inflation, Productivity and Income Distribution.
  • Inflation and Sector Unemployment.
  • Introduction to Stock Adjustment Dynamics.
  • Intertemporal Macroeconomic models.
  • Real Business Cycles.
  • Economic Growth.

Learning Outcomes

Subject-specific Knowledge:
  • Upon completion of the module, students should be able to:
  • Understand the mechanism at work in the goods market, the asset market, and the labour market.
  • Synthesise the interrelation of the above three markets into a single picture of the macro-economy.
  • Understand the implications of different policy options.
  • Compare and contrast the effects of these on the equilibrium level of key macro-economic variables.
  • Analyse the dynamic structure of the economy and what limitations it places on economic policy.
Subject-specific Skills:
  • Upon completion of the module, students should be able to apply standard macroeconomic models to key Economic Policy issues
Key Skills:
  • Written Communication e.g. through summative assessment.
  • Numeracy e.g. by applying core mathematical and statistical skills to answer examination questions

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study.
  • Formative assessment is by means of an in-class test.
  • Summative assessment is by means of a written examination and an individual essay.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 40 2 per week 1 hour 40
Revision Lectures 2 1 per week 1 hour 2
Tutorials 8 1 every 2 weeks 1 hour 8
Preparation and Reading 150
Total 200

Summative Assessment

Component: Assignment Component Weighting: 40%
Element Length / duration Element Weighting Resit Opportunity
Individual Essay 2000 words 100% same
Component: Examination Component Weighting: 60%
Element Length / duration Element Weighting Resit Opportunity
One written examination 2 hours 100% Same

Formative Assessment:

In-class test under exam conditions.


Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University



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