Curricular Unit:Code:
Macroeconomics987MAC
Year:Level:Course:Credits:
1UndergraduateBusiness Sciences8 ects
Learning Period:Language of Instruction:Total Hours:
Spring SemesterPortuguese/English104
Learning Outcomes of the Curricular Unit:
To understand the basic concepts and tools of macroeconomic analysis. To understand the circular flow of income and recognize its articulation with the national accounts, under the production, income and expenditure approaches. To distinguish between the classical and the keynesian macroeconomic perspectives in relation to the goods and services market, the labour market and the capital market. To be able to critically assess the operationalization of economic policy. To apply this knowledge to the reading of economic statistics and the interpretation of economic policy guidelines.
Skills to be developed: analysis and synthesis; acquisition of specific knowledge in macroeconomics; problem solving; application of knowledge to different contexts; autonomy.
Syllabus:
1. Macroeconomics and the National Accounts
1.1. The circular flow of income
1.2. Fundamental Identities
1.2.1. Production approach
1.2.2. Income approach
1.2.3. Expenditure approach
2. The aggregate demand and the aggregate supply
2.1. The determinants of aggregate demand
2.2. The determinants of aggregate supply
2.3. Movements along the curves and shifts of the curves
3. The classical perspective on Macroeconomics
3.1. Basic assumptions
3.2. The goods and services market
3.3. The labor market
3.4. The capital market
3.5 The overall balance
4. The Keynesian Macroeconomics in perspective
4.1. The consumption and savings function
4.2. The investment function
4.3. The governmental sector
4.4 The external sector
4.5 Analytical deduction of the model
4.6 The fiscal variables and the multiplier
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
The course seeks to provide students with an understanding of the dynamics of macroeconomic systems under both the classical and Keynesian perspectives. The contents first address the clarification of the relationship between the circular flow of income, national accounts and macroeconomic models. Within this context students are introduced to fundamental concepts of measurement in national accounts, leading them to the understanding of the fundamental macroeconomic identity that stands at the basis of fiscal policy in modern economies. The observation of the macroeconomic system is then established through the graphical analysis of the AD and AS curves: The equilibriums that are formed are analyzed both under the classical and the Keynesian approaches.
Teaching Methodologies (Including Evaluation):
The teaching methodology combines the theoretical presentation of concepts, measurement and models. These tools allow the understanding of the dynamics of a macroeconomic system through the clarification of how markets relate and how macroeconomic aggregates are thereby formed. All contents are subject to graphical presentation, analytical deduction and exercises. Practical examples of the current macroeconomic performances, especially referring to the European and Portuguese economies, are also used throughout the classes. Evaluation is based on two intermediate tests (50%+50%) or a final exam.
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
The methodology used combines theoretical presentation with graphical analysis and analytical deduction of macroeconomic models. In addition to the theoretical presentation of the contents, items 1 to 3 give more relevance to graphical analysis and aggregates’ calculation, whereas item 4 gives greater importance to graphical analysis and analytical deduction of multipliers. Students are asked to solve problems throughout the course. Besides problem solving, the practical application of knowledge is also established through the use of examples related to the current macroeconomic performance of the States, with particular reference to the European and Portuguese economies.
Reading:
Blanco, A. F. (2018). What remains from the trade-off between inflation and unemployment? (A brief reflection on the Phillips curve), Iberian Journal of the History of Economic Thought, (1), p. 71. DOI: 10.5209/IJHE.60281.
Dornbusch, R. e Fischer, S. (1994). “Macroeconomia”. Boston: McGraw-Hill.
Erbschloe, M. (2017). Principles of Macroeconomics. Salem Press Encyclopedia. [B-on]
Krugman, P. e Wells, R. (2007). “Introdução à Economia”, RJ: Elsevier.
Mankiw, N. G. e Taylor, M. P. (2017). “Economics.” Hampshire: Cengage Learning.
Mankiw, N. G. (2008). “Introdução à Economia.” S. Paulo: Cengage Learning.
Pinho, M. (2018). “Macroeconomia – Teoria e Prática Simplificada.” Lisboa: Sílabo.
Samuelson, P. e Nordhaus, D. (2005). “Macroeconomia.” Lisboa: McGraw Hill