Introduction to Macroeconomics

2024/2025

Academic Year

ENG

Instruction in English

5

ECTS credits

Delivered at:

Department of Economics

Course type:

Compulsory course

When:

1 year, 3, 4 module

Instructors

Дудкин Сергей Васильевич

Максимцева Анна Викторовна

Molchanov, Pavel S.

Tomskiy, Savva

Course Syllabus

Abstract

This is an introductory macroeconomics course designed for students majoring in economics and management.

Learning Objectives

• Mastering the basic principles of macroeconomic analysis.

Expected Learning Outcomes

• Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production, Accounting and Economic Profit, define Explicit and Implicit Costs. Calculate and graph short-run and long-run costs of production.
• define and analyse the determinants of business cycles, long run economic growth, unemployment, inflation; use and apply a wide range of economic models to analyse contemporary and historical macroeconomic events, and formulate and propose appropriate macroeconomic policies; be capable to work in a team; be prepared for further units which require a knowledge of macroeconomics;
• ILO 2: formulate the real world phenomena at the aggregate level in the language of macroeconomic modelling using graphic analysis of IS-MP, AD-AS and Solow models and simple algebra
• Describe the Solow model of economic growth. Illustrate the steady state levels of capital and output per effective worker. Explain the out-of equilibrium dynamics of capital and output per effective worker.
• To be able to apply theoretical approaches to explanation of gender inequality in the labor market and household
• to define aggregate demand (AD), to derive the AD curve and to explain its main properties; to interpret the equilibrium in the AD-AS model and the process of its restoration; to determine the types of AD and AS shocks and to explain intuitively the mechanism and the consequences of each type of shocks in the short run, in the medium run and in the long run
• Use the AD-AS model to explain periods of growth, recession, and expansion
• Identify the equilibrium in AD-AS model
• analyze labor market flow using labour statistics
• Knowledge of macroeconomic approaches.
• Knowledge of System of national accounts
• Flow and stock variables
• Production, income and expenses methods for calculating GDP.
• Macroeconomic production function
• Dynamic labor market
• Acemoglu classification
• Blacksmith's Mystery.
• Tobin's q-coefficient
• Barro-Ricardo equivalence. Non-Ricardian and Ricardian consumers
• The concept of an asset
• Quantity Theory of Money: Fisher's Identity and the Cambridge Equation.
• LM curve for money supply targeting and interest rate targeting. Shifts of the LM curve.
• Classification of cyclic indicators.
• Macroeconomic theory of the short run: key premises. Short-term macroeconomic equilibrium in the IS-LM model with inflexible prices.
• urves IS and LM in an open economy. exchange rate regimes.

Course Contents

• 1. Introduction. Main macroeconomic indicators
• 2. Potential output
• 3. Consumption, saving and investment. Desired Capital Stock Model and Intertemporal Choice Model
• 4. Economic growth
• 5. Aggregate demand in a closed economy and fiscal policy. IS Model
• 6. Money and monetary policy. LM Model
• 7. Business cycles. IS-LM Model
• 8. Business cycles. AD-AS Model
• 9. Fundamentals of an open economy

Assessment Elements

• Контрольная работа
• Аудиторная работа
• Кейс
• Экзамен

Interim Assessment

• 2024/2025 4th module
  Base grade: G0 = 0.2*Class Grade + 0.28*Midterm + 0.1*Case + 0.42*Exam A student receives a final grade of 1 if the base grade is less than 3 or the exam grade is less than 2.5 All students are ranked by their base (“raw”) G0 score. For everyone who has a base grade of at least 3 and an exam grade of at least 2.5, the percentile is calculated using the formula: (Student’s rank - 1)/(Number of all students in the course with a basic grade of at least 3 and exam grade of at least 2.5)*100% The final grade is given in accordance with the following scale of conversion from percentile to grade on a 10-point scale: Assessment Percentile range 4 90-100% 5 76-89,99% 6 54-75,99% 7 30-53,99% 8 13-29,99% 9 4-12,99% 10 0-3,99%

Bibliography

Recommended Core Bibliography

• Macroeconomics, Abel, A.B., 2011
• N. Gregory Mankiw. (2020). PDF Macroeconomics 10th Edition by N. Gregory Mankiw Download. https://doi.org/10.5281/zenodo.3752461

Recommended Additional Bibliography

• Gregory Mankiw, Mark P Taylor, Celeste Campher, & Ronney Ncwadi. (2018). Macroeconomics: Vol. 2nd edition. Cengage Learning.
• Mankiw, N. G. (DE-588)120973626, (DE-576)164048383. (2000). Macroeconomics / N. Gregory Mankiw. New York, NY: Worth. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.07890529X

Authors

• Molchanov Pavel Sergeevich
• TOMSKII SAVVA KONSTANTINOVICH