Macroeconomics

Course No.:ECH1131002  Credits:3

Course description

Macroeconomics is the study of the structure and performance of national economies and of the policies that governments use to try to affect economic performance. In this course we will describe and analyze the factors that influence aggregate economic outcomes such as growth in national output and income, unemployment and inflation. Throughout the course, we will develop several micro-founded macroeconomic models, and consider alternative theories and their competing conclusions about the nature of market economies and the role of government policies to influence macroeconomic outcomes. The theories will be applied to current issues such as financial crisis, fiscal stress, debt crisis, tax reforms and job creation.

Learning outcomes

On completion of the course, students should be able to:

1. Possess a coherent set of ideas for understanding macroeconomic phenomena and policy issues.

2. Understand the assumptions, structure and micro-foundations of a macroeconomic model and understand its power and shortcomings.

3. Formulate a relevant model and use such analytical tools in addressing a key macroeconomic question independently.

4. Understand the different ways in which economic issues can be tackled.

Relationship to other courses

Macroeconomics is one of two broad areas within the field of economics, the other being microeconomics. Macroeconomics and microeconomics have many basic economic ideas and methods in common, and the difference between them is the level at which the economy is studied. Microeconomics focuses on individual consumers, workers, and firms, each of which is too small to have an impact on the national economy. Macroeconomics ignores the fine distinctions among the many different kinds of goods, firms, and markets that exist in the economy and instead focus on national totals. The process of summing individual economic variables to obtain economywide totals is called aggregation. The use of aggregation and emphasis on aggregate quantities such as aggregate consumption, aggregate investment, and aggregate output are the primary factors that distinguish macroeconomics from microeconomics.

Textbook and reading lists

1.Gao Hongye(2014), “Western Economic(Macroeconomics)”, 6^thedition. China Renmin University Press.

2.Andrew B.Abel, Ben S.Bernanke, Dean Croushore(2013), “Macroeconomics”, 7^th edition. China Renmin Univerity Press.

3. Qi Huaqing(2012), “Macroeconomics”, 1^th edition. Qinghua University Press.

4. Yuan Zhigang(2008), “Macroeconomics”, 1^th edition. Higher Education Press.

5. Ye Hang(2004), “Macroeconomics”, 1^th edition.  Zhejiang University Press.

Course assessment

Course schedule