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Macroeconomics

Course developer

Prior knowledge

Ekon1023, 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

Students will be able to demonstrate:
KNOWLEDGE of
key macroeconomic indicators, causal relationships in the national economy, GDP calculation approaches and nominal and real GDP, aggregate demand and supply, the kinds of macroeconomic equilibrium, the kinds and instruments of fiscal and monetary policies for regulating economic processes and causal relationships between inflation and unemployment (tests);
the role of households in economic growth (presentation of independent work).
SKILLS
Professional skills to independently select and critically compare macroeconomic indicators and draw reasoned conclusions and proposals on how to improve the situation (group work, a presentation, a test).
Soft skills to plan the assignments given and complete them within deadlines, assume responsibility, build up communication skills and develop critical thinking about urgent macroeconomic problems (discussion, group work, a presentation).

COMPETENCES to
describe macroeconomic processes, key macroeconomic indicators, performing relevant calculations, and causal relationships at macro level (examination).

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)
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
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. Presentation: a description of an urgent economic problem, an analysis of the economic situation, conclusions and proposals for improving the situation – 4 h

Requirements for awarding credit points

The student must pass two tests on GDP calculation and unemployment and inflation, do independent work and make two presentations (an analysis of a household budget and a description of an urgent economic problem) and take an examination at the end.

Description of the organization and tasks of students’ independent work

The independent work, the student must do, involves analysing monetary inequality, drafting a budget for a student and planning incomes and expenditures for an average household in Latvia as well as performing a critical analysis of an urgent economic problem, drawing conclusions and making proposals for further decisions.
The student must prepare for classes on macroeconomic disequilibrium and the role of fiscal and monetary policies in regulating economic processes.

Criteria for Evaluating Learning Outcomes

The total assessment comprises an examination (40%) and assignments done during practicals within the semester (two tests, two presentations, discussion, group work) (60%)

Compulsory reading

1. Šenfelde M. Makroekonomika. 4.izd. Rīga: RTU, 2014., 244 lpp.
2. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015., 269 lpp.

3. McConnell, Campbell R. Macroeconomics: principles, problems, and policies. New York: McGraw-Hill/Irwin, 2012., 499 p.

Further reading

1. Gods U. Makroekonomika / 2., papild. izd. Rīga: Biznesa augstskola Turība, 2004., 360 lpp.
2. Bikse V. Ekonomikas teorijas pamatprincipi: Mācību līdzeklis. Rīga: SIA Izglītības soļi, 2007., 454 lpp.
3. Bikse V. Ekonomika un bankas. Latvijas Komercbanku asociācija, Konsultāciju Mācību centrs, 2009., 224 lpp.
4. Ducmane K., Ozoliņa A. Naudas laiki Latvijā. A/S Latvijas avīze, 2013., 250 lpp.
5. Lībermanis G. Makroekonomikas pamatrādītāji. Rīga: SIA Jumis, 2007., 182 lpp.
6. Lībermanis G. Makroekonomika. Rīga: Kamene, 2006., 445 lpp.

7. Mankiw G.N., Taylor M.P. Macroeconomics. 7th ed., Worth Publishers, 2010., 608 p.

Periodicals and other sources

Makroekonomika www.makroekonomika.lv
Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: ISSN 1407-2041.
Forbes. Rīga: SK Media. ISSN 1691-6018
Kapitāls: žurnāls lietišķiem cilvēkiem: krāsains biznesa un ekonomikas žurnāls. Rīga: Lietišķās informācijas dienests. ISSN 1407-2505

Notes

Compulsory course for the ESAF academic bachelor programme Economics.