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Macroeconomics

Course developer

Prior knowledge

Ekon1012, Microeconomics

Course abstract

The course deals with economic problem analyses at macro-level, building an understanding of macroeconomic indicators and causal relationships, monetary and fiscal policy instruments and their effects on the national economy as well as the consequences of macroeconomic disequilibrium.

Learning outcomes and their assessment

Knowledge of the nature and relationships of basic macroeconomic indicators, the current situation of the Latvian economy; nominal and real GDP, their calculation methods; aggregate supply and aggregate demand, types of macroeconomic equilibrium; types and instruments of fiscal and monetary policy; consequences of imbalances in the economy, relationships between inflation and unemployment, the importance of exports and imports. Test 1 and 2. Presentation of homework.
Skills - based on the acquired theoretical knowledge, students can perform a practical analysis of the macroeconomic situation; independently and critically select, systematize and analyze current economic indicators, draw reasoned conclusions and discuss current economic problems. Practical work. Discussions. Presentation of homework.
Competence – students can describe macroeconomic processes, key indicators, their calculation; the interconnections of economic regularities at the level of the national economy, expressing reasoned proposals on a specific economic problem. Discussions. Test. Presentation of homework. Exam.

Course Content(Calendar)

1. Introduction – 2 h (1 h lecture, 1 h practical)
2. Key macroeconomic indicators – 8 h (3 h lectures, 5 h practicals, 1st homework)
3. Macroeconomic equilibrium and stability – 6 h (4 h lectures, 2 h practicals)
4. Aggregate expenditure and income – 4 h (2 h lectures, 2 h practicals)
5. Test 1 – 1 h
6. Macroeconomic instability – 4 h (1 h lecture, 3 h practicals)
7. Inflation – 6 h (4 h lectures, 2 h practicals)
8. Fiscal policy – 6 h (4 h lectures, 2 h practicals)
9. State budget system – 6 h (4 h lectures, 2 h practicals)
10. Test 2 – 1 h
11. Banking – 4 h (2 h lectures, 2 h practicals)
12. Money – 4 h (3 h lectures, 1 h practical)
13. Central bank and monetary policy – 2 h (2 h practicals)
EXCURSION to the Bank of Latvia or any leading company in an industry
14. International economic relations – 4 h (2 h lectures, 2 h practicals)
15. Economic growth – 2 h (1 h lecture, 1 h practical)
16. General macroeconomic equilibrium – 2 h (1 h lecture, 1 h practical)
17. 2nd home work. Presentation: a description of an urgent economic problem, an analysis of the economic situation, conclusions and proposals for improving the situation – 4 h.
Part – time extramural studies:
All the topics intended for full – time studies are covered, yet the number of contact hours is ½ of the specified number of hours.

Requirements for awarding credit points

Two tests must be written: 1. Basic indicators of the national economy: GDP calculation and macroeconomic balance; 2. Imbalance in the national economy: unemployment and inflation. 2 homework assignments prepared, submitted and successfully presented (innovative products and description of a current economic problem). Interactive online tests and assignments completed, participation in group work and discussion. Participation in a study tour. Exam.

Description of the organization and tasks of students’ independent work

1st homework presentation – The importance of innovation in the economy - is prepared, presented during practical work and uploaded to e-studies.
2nd homework presentation – a description of current economic problems (topics from the proposed list) is prepared, presented during practical work and uploaded to e-studies.
Preparation for tests and data collection, compilation, analysis, and its presentation.
Students must prepare for discussions in class about the importance of macroeconomic imbalances, fiscal and monetary policy in regulating economic processes.

Criteria for Evaluating Learning Outcomes

The exam makes up 40% of the assessment; fulfillment of requirements during the semester (2 tests (20%), 2 presentations (25%), discussions during practical work, group work, study tour (15%).

Compulsory reading

1. Bikse V. Makroekonomika: teorija un politika, 2.izd.,LiePu, 2020, 363.lpp
2. Šēnfelde M. Makroekonomika. – 5.izdevums.Rīga: RTU, 2014. - 245 lpp.
3. Mankiw, N.G., Macroeconomics, 10th edn., New York, Macmillan International Higher education, 2019., 612 p

Further reading

1. Gods U. Makroekonomika / 2., papild. izd. – Rīga: Biznesa augstskola Turība, 2004. – 360 lpp.
2. Kopnina H., Poldner K. Circular Economy: Challenges and Opportunities for Ethical and Sustainable Business. Abingdon, Oxon; New York, NY: Routledge, 2022. 226 pp. ISBN: 978-0-367-41864-9
3. McConnell, Campbell R. Macroeconomics: principles, problems, and policies. New York: McGraw-Hill/Irwin, 2012., 499 p.
4. Seyoum B. Export – Import Theory, Practices, and Procedures. Fourth Edition. New York, NY: Routledge, 2021. 656 pp. ISBN: 978-0-367-89678-2
5. Williamson S.D. Macroeconomics. Global Edition. Sixth Edition UK: Pearson Education Limited, 2018, 731 pp.

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: ISSN 1407-2041.
2. Latvijas Bankas uzturēta ekonomiskās analīzes vietne. Pieejams: https://www.makroekonomika.lv/
3. Centrālā statistikas pārvalde. Pieejams: https://www.csb.gov.lv/lv/sakums
4. ES valstu statistika. Pieejams: https://ec.europa.eu/eurostat/data/database

Notes

Compulsory course for the ESAF academic bachelor programme Economics.