LV EN RU DE FR

Macroeconomics

Course developer

Prior knowledge

Ekon1024, Microeconomics

Ekon2029, International Economic Relations

Ekon2122, Statistics

Course abstract

The course is designed to build up students’ understanding of economic processes in the national economy and their skills in practically using available findings in constructively analysing economic processes and in research. In the course, the key focus is placed on economic growth, market situations and economic developments as well as assessments of government policies and measures implemented aimed at achieving macroeconomic goals and balanced development in the national economy. Students perform analyses of key macroeconomic problems and draw independent conclusions on economic growth and opportunities for economic development in Latvia, using the knowledge acquired.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
1. The role, goal and objectives of macroeconomics and the macroeconomic circular flow model in both a closed and an open economy - practical assignments, a situation simulation;
2. Key macroeconomic indicators, economic cycles, aggregate demand and supply, a macroeconomic equilibrium, inflation and unemployment – test 1;
3. The money market, bank operations in the money market, monetary policies, fiscal policies and the national budgetary system – test 2, a study trip;
4. International economic relations – discussions.
SKILLS to
1. Use economic models in situation analyses - practical assignments;
2. Independently analyse key macroeconomic indicators - test 3;
3. Comprehend the structure of household consumption expenditure – homework;
4. Analyse and assess the causes of macroeconomic instability – test 1;
5. Independently find, systemise, process and interpret statistical data – practical assignments, presentations.
COMPETENCES to
1. Analyse and assess economic processes and macroeconomic policies implemented by the national government, identify problems and come up with solutions to the problems by using the knowledge and skills acquired – an examination;

2. Assess the market situation and development opportunities for a particular industry by using the knowledge and skills acquired – a portfolio, a presentation.

Course Content(Calendar)

1. Intermediate and final product. The value added method. (1 h lecture, 2 h practicals)
2. Structure of GDP in Latvia and calculation of national accounts. (1 h lecture, 2 h practicals)
3. Economic growth. (1 h lecture, 2 h practicals)
4. Test 1 (1 h practical)
5. Cyclical economic development. (1 h lecture, 2 h practicals)
6. Aggregate demand and supply. A short-term and a long-term equilibrium. (1 h lecture, 2 h practicals)
7. Disequilibrium: unemployment and inflation. (2 h lectures, 2 h practicals)
8. Test 2 (1 h practical)
9. Consumption, savings and investments. (1 h lecture, 2 h practicals)
10. Household budget analysis in Latvia. (2 h practicals)
11. Money. Banks. Monetary aggregates. (2 h lectures, 2 h practicals)
12. Budget analysis - revenues, expenditures. An external debt. (1 h lecture, 2 h practicals)
13. Fiscal policy and monetary policy. (2 h lectures, 2 h practicals)
14. Study tour. (2 h lectures, 2 h practicals)
15. Test 3. (1 h practical)
16. International trade. The balance of payments. Exports, imports, the changes in Latvia. (1 h lecture, 2 h practicals)

17. Presentation of independent work – a portfolio of a particular industry of the national economy. (3 h practicals)

Requirements for awarding credit points

• Three tests;
• homework;
• independent work – a portfolio, a presentation;

• written examination.

Description of the organization and tasks of students’ independent work

Homework - a study of the consumption expenditure structure of one’s own household that is submitted within the time specified.
A portfolio and a presentation of a study of the current situation in and development opportunities for a particular industry in Latvia, which are submitted and presented within the time specified.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment:
• Test 1 – 10 points;
• Test 2 – 10 points;
• Test 3 – 10 points;
• Homework – 10 points;
• Portfolio – 20 points;
• Examination – 40 points.

A score of 10 is equal to one point on a 10-point marking scale.

Compulsory reading

1. Šenfelde M. Makroekonomika, 4. izd. Rīga: RTU, 2012. 244 lpp.
2. Bikse V. Makroekonomika: teorija un politika. Liepāja: LiePA, 2015. 269 lpp.

3. Stephen D.Williamson. Macroeconomics: 6th Gobal Edition. United Kingdom: Pearson Education Limited, 2018. 731 p.

Further reading

1. Olney M. L. Macroeconomics as a Second Language. Hoboken: John Wiley & Sons, Inc., 2011. 334 p.
2. Bikse V. Ekonomika un bankas. Latvijas Komercbanku asociācija, Konsultāciju Mācību centrs, 2009. 224 lpp.
3. Ekonomiskā krīze Latvijā: “veiksmes stāsta” pēcgarša / S.Kruka redakcijā. – Rīga: Rīgas Stradiņa universitāte, 2016. 225 lpp.
4. Plotkāns A. Cita ekonomika. Rīga: SIA Dienas Grāmata, 2010. 192 lpp.
5. Liepiņš A. Analītiskā makroekonomika / 2., papild. izd.. – Rīga: Biznesa augstskola Turība, 2007.54 lpp.
6. Gods U. Makroekonomika / 2., papild. izd. – Rīga: Biznesa augstskola Turība, 2004. 360 lpp.
7. Lībermanis G. Makroekonomika. - Rīga: Kamene, 2006. 445 lpp.
8. Latvijas ekonomikas konkurētspēja un investīciju nozīme tā veicināšanā: Monogrāfija. E. Dubras red. Rīga: LU Akadēmiskais apgāds, 2009. 168 lpp.
9. Medvedevs R. Latvijas globalizācija un kopsavilkuma plāns: Pasaules ekonomikas globalizācija un tās ietekme uz Latvijas ekonomiku. Rīga, 2009. 127 lpp.
10. Bikse V. Ekonomikas teorijas pamatprincipi: Mācību līdzeklis. Rīga: SIA Izglītības soļi, 2007.454lpp.

Periodicals and other sources

1. Latvijas Centrālās statistikas pārvaldes mājas lapa: http://www.csb.gov.lv.
2. Latvijas Republikas Ekonomikas ministrija. Latvijas tautsaimniecība: makroekonomiskais apskats, Rīga (periodisks izdevums reizi ceturksnī).
3. Latvijas Bankas mājas lapa: http://bank.gov.lv.
4. Latvijas Republikas Finanšu ministrijas mājas lapa: http://www.fm.gov.lv.
5. Kapitāls. Periodisks izdevums. Rīga : SIA „Jaunais Kapitāls”. ISSN 1407-2505.

6. Eurostat mājas lapa: http://ec.europa.eu/eurostat.

Notes

Field professional and information technology course (Part B2) for the ESAF professional bachelor programme Entrepreneurship and Business Management