Aims and Fit of Module
The aim of this module is to complement and build on ECO109 Principles of Microeconomics and to provide students with a foundation for further studies in macroeconomics. The module introduces students to concepts and theories of economics which will help them to understand changes in the macroeconomic environment. The module also explains and analyses the formulation of government macroeconomic policy.
A. Explain the relationship between expenditures and national income and demonstrate how monetary and fiscal policies may be used to influence them
B. Explain the behaviour of economic aggregates such as national income, inflation and unemployment over time
C. Explain and assess government policy in a range of policy situations
D. Explain the framework of national income accounting.
E. Use graphical and algebraic modelling to analyse the economy and economic policy
F. Explain the interconnections between the markets for goods, money and labour
G. Explain the influence of international trade and the choice of exchange rate regime on the behaviour of the economy and the effectiveness of economic policy
H. Explain the principal influences on long-term growth and the short-run fluctuation in output around the long-run growth trend
Method of teaching and learning
Lectures will provide essential information and introduce students to the basic concepts and tools of analysis, including some basic practice in applying the techniques. Tutorials will be based on structured exercises which will consolidate students' understanding of key concepts and analytical techniques. This will develop in students the ability to apply economic reasoning to make sense of real world events and policy options/initiatives.