Foundation of Macroeconomic Theory and Policy

Macroeconomics is the study of behaviour of the economy as a whole. Macroeconomics concerns business cycles that lead to unemployment and inflation as well as the longer-terms trends in output and living standards. In analyzing Macroeconomics we focus on a few key economic variables; gross national product (GDP), the unemployment rate, inflation and export. That is why during these classes we will try to understand a role of the government policy impact on four main areas: output, employment, price stability and international trade. Also an overview of main economic concepts will be presented.The purpose of the Foundations of macroeconomic theory and policy course is to expand student\'s knowledge of the financial sector, stabilization policies, economic growth, and international economics.

Lecture

1. Fundamental concepts of Macroeconomics - 3h

2. Aggregate Supply and Demand - AS-AD model and Potential GDP - 3h

3. Central Banking and Monetary Policy - 3h

4. Budget and Fiscal Policy - 3h

5. International Trade and the World Economy - 3h

Class

1. Goals and Instruments of Macroeconomics - 2h

2. Details of the National Accounts - 3h

3. Aggregate Supply in Short and Long Run - Classical and Keynesian approach, AS-AD and the Business Cycle - 3h

4. Fiscal and Monetary Policy effects - 3h

5. Principles of Comparative Advantage - 2h

6. Protectionism and free trade - 2h

1. D. Begg, Economics, McGraw-Hill, 2002

2. P. A. Samuelson, Economics, McGraw-Hill, 2001

3. M. Burda, Ch. Wyplosz, Macroeconomics a european text, Oxford, 2005

4. J. Sloman, Essentials of Economics, Pitman 2001

Knowledge

After the course students:

- point out major aims and tools of Micro and Macroeconomics,

- differentiate the consumer’s and producer’s rules in market system,

- explain the global and regional development in modern and global economy.

Skills

After the course, the students are able to:

- interpret socio-economic observable facts taking place in market economy,

- explain the functioning of basic mechanisms in market system,

- present main challenges of socio-economic progress in global economy,

- distinguish and compare the strategic points in consumer’s and producer’s theory,

- calculate measures of economic performance.

Competences

After completing the course, the students are able to:

- value the role and significance of market economy in present-day global world,

-are aware of interdisciplinary character of economic sciences,

- differentiate the complexity and interdependence of modern world economy problems.

Methods and criteria of assessment

1. Lectures – written exam (theory and case studies)

2. Classes – oral presentations or individual projects concerning the following aspects: essence, form, discussion and solving problems ability.

Grades:

2,0 - Lack of orientation in the range of main laws, processes and phenomena of market system.

3.0 Basic orientation in the range of main laws, processes and phenomena of market system, the ability to draw a graph and explain the basic economic mechanisms.

4.0 Good orientation in the range of main laws, the ability to draw graphs and explain the economic mechanisms in Micro and Macroeconomics.

5,0 Very good orientation in the range of main laws, processes and phenomena of market system, ability of drawing graphs and explaining economic mechanisms of microeconomics and macroeconomics.

Students labor:

- lectures– 15 h.

- classes– 15 h.

- exam – 1 h.

- consultations– 4 h.

- preparation to classes - 60 h.

- preparation presentation – 40 h.

- preparation to exam – 15 h.

together: 150 h. : 25 = 6,0 (6 pkt ECTS)

Total: 6 pkt ECTS

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