Macroeconomics attempts to understand how the inflation rate, unemployment rate, the level of income or the growth rate of per capita income of an economy are determined. Besides, all economists agree that economic policy affect the economy, but that this effect may differ depending on the time horizon. Therefore macroeconomics courses must cover issues related to the short run, as the economic cycle and stabilization policy, and issues related to the long run, as economic growth, the natural rate of unemployment or persistent inflation.



In this course we will study the economy in the long run. This course is offered in the second year of the Degree in Economics. This course is the second one in a sequence beginning in the first year with the course "Introduction to Macroeconomics" (which introduces students to the knowledge of the most important macroeconomic concepts) and then continues with the Intermediate Macroeconomics course (which analyzes the economy in the short run) and dynamic macroeconomics course (studying the dynamic evolution of some relevant macroeconomic variables under different scenarios of economic policy, taking into account how these policies affect economic agents' decisions).



The skills of the course are related to the SDGs (Sustainable Development Goals) of the UN 2030 Agenda in various dimensions. We outline the following:



- SDG 1 End of poverty (goals 1.1 and 1.2). The course analyzes how the income level of an economy is measured (Topic 2). Topic 3 studies how a country's income is determined and distributed. Topic 4 analyzes the factors that determine economic growth using the Solow model. Furthermore, Topic 4 presents the consequences of a low rate of economic growth on a country's standard of living.



- SDG 8 DECENT WORK and ECONOMIC GROWTH (goals 8.1, 8.2 and 8.5). The course analyzes the factors that determine economic growth using the Solow model (Topic 4). In particular, Topic 4 studies the importance of sustained productivity improvements in order to achieve long-run economic growth. Topic 6 presents the factors that determine the long-term unemployment rate and the different employment policies that can be carried out.



- SDG 10 REDUCE INEQUALITY IN AND BETWEEN COUNTRIES (goal 10.4). Topic 6 analyzes the different economic policies that can be carried out to reduce the effects of the unemployment rate, taking into account the possible causes of this unemployment rate.

The SKILLS that you are going to develop and acquire in this course are the following:

C1. Bring rationality to the analysis and description of macroeconomic questions, focusing on the long run.

C2. Evaluate the consequences of different policy alternatives and choose the most adequate one to meet some targets, in a long run context.

C3. Derive relevant professional information from macroeconomic data, regarding long run questions.



Those skills are reflected in the following teaching AIMS:

O1. Analyze the role of Macroeconomics and present the discipline among other Social Sciences.

O2. Understand the economic concepts underlying the main macroeconomic aggregates, being able to describe how they are computed and who elaborates the official statistics in a country.

O3. Use basic models of income determination in closed and open economics, being able to represent them graphically, and to solve them analytical and numerically.

O4. Analyze the differences in growth patterns of different economies. Use the Solow model to predict the long run behavior of the economy.

O5. Understand the definitions and concepts of unemployment, from the long run perspective.

O6. Analyze the role of money in modern economies and understand the role of monetary policy under the Classic Monetary Theory.

O7. Understand the concept of economic fluctuations, analyzing the implications of the fixed prices vs. flexible prices assumption.

 

So expected LEARNING RESULTS are:

R1. To describe how the data on the main macroeconomic aggregates are computed and which institutions are in charge of constructing and releasing them.

R2. Interpret the assumptions and foundations of macroeconomic models to study long run questions, being able of analyzing them graphically and of using them to solve mathematically related questions.

R3. Analyze the effect of fiscal and monetary policies in the framework of the proposed long run macroeconomic models.

R4. Write professional reports based on the results derived from a quantitative exercise to propose simple economic policy recommendations.



In this course, you will also acquire some cross-courses SKILLS. In particular,

T1. Identify the relevant sources of economic information and their contents.

T2. Use information and communication technologies in your professional development

T3. Read and communicate fluently in professional terms in English.

T4. Develop fluent communication skills.

1. Introduction to Macroeconomics.

2. The data of macroeconomic

3. National income determination: production, distribution and allocation.

4. Economic growth

5. Money and inflation

6. Unemployment

7. The open economy

8. Introduction to economic fluctuations.

In this course different teaching methodologies are used so that students develop skills and achieve the learning outcomes set. A primary objective is to promote self-learning through computer and library resources that help students to understand the different aspects of the course.



Tutorial classes of the conceptual contents of the course will be taught, and students will be encouraged to ask questions related to the contents and also open discussion so that students acquire oral communication skills.



Activities, problems and exercises to develop individually or by group will be provided. These activities, problems and exercises will deepen the theoretical and practical knowledge of the subject of Macroeconomics and connect with other related areas. Responsible team work is encouraged.



It will be required to perform an assignment on your computer which will use basic computer programs and promote student skills.



The timing of the distribution of the different classes throughout the semester as well as the dates of the exams (schedule) will be presented on the first day of class and shall take into account schedules determined by the University .



The materials that teachers deemed appropriate will be posted in the EGELA teaching platform used in the UPV / EHU.

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Multiple-Choice Test (%): 75
  • Team projects (problem solving, project design)) (%): 25

The assessment in the ordinary call follows the mixed method assessment. 25% of the final grade will be based on a homework carried out during the course. Students will also perform one midterm exam accounting for 25% of the final grade. The remaining 50% of the final grade will be set to a final exam to be held on the date set by the University. Students whose performance improves during the semester and they obtain in the final exam a better grade than in the miderm (the grade got in the midterm must be higher than 3 out of 10), they will be graded as follows: final exam (75%) and homework 25%. It will be necessary to get 3 out of 10 in the final exam to pass the course. The final grade can be increased up to 10% by participating in class and doing the exercises and activities requested.



Students will have the chance to withdraw from mixed grading and take a final exam accounting for 100% of the grade for the ordinary call. To do so, they have to notify to the teacher before the official deadline. It is mandatory to notify the withdraw from mixed grading before the official deadlines. This final exam has two parts: a multiple choice test (70%) and a practical exam (30%). It will be necessary to get 3 out of 10 in the multiple-choice test to evaluate the practical exam. The practical exam will be similar to those exercises made in class.



The tests will be face-to-face. In the event that, for non-academic reasons, exams cannot be taken in person, the type of exam can be changed, which in any case will be announced to students in advance.

In the extraordinary call, a final exam comprising 100% of the grade for the course will apply. This final exam will consist into two parts: a multiple choice test (70%) and a practical exam (30%). It will be necessary to get 3 out of 10 in the multiple-choice test to evaluate the practical exam. The practical exam will be similar to those exercises made in class.



In the event that, for non-academic reasons, the exam cannot be taken in person, the type of exam can be changed, which in any case will be announced to students in advance.

[1] Mankiw, N. G., Macroeconomics. Worth Publishers; Ninth Edition (2016)

[2] Any other material published on-line.

Basic bibliography

[1] Mankiw, N. G., Macroeconomics. Worth Publishers; Ninth Edition (2016)



[2] Any other material published on-line.

In-depth bibliography

[1] Blanchard, Olivier and D.R. Johnson. Macroeconomics. 6th ed., Prentice Hall, 2013.

Web addresses

- INE: http://www.ine.es/
- European Central Bank, http://www.ecb.int/
- World Bank, http://www.worldbank.org/
- Eurostat: http://europa.eu.int/comm/eurostat/
- Eustat: http://www.eustat.es/
- International Monetary Fund: http://www.imf.org/
- OECD: http://www.oecd.org/home/