Curricular Unit:			Code:
Macroeconomics			777MAC
Year:	Level:	Course:	Credits:
1	Undergraduate	Political Science and International Relations	6 ects
Learning Period:		Language of Instruction:	Total Hours:
		Portuguese/English	78
Learning Outcomes of the Curricular Unit:
The curricular unit aims to observe how fundamental macroeconomic variables relate, how to measure national output by resorting to different approaches, and how the AD-AS model operates to form macroeconomic aggregates. By the end of the semester students are expected to understand the fundamental rationale behind the classical and Keynesian approaches to the goods and services, the monetary, and the labor markets, as well as to be capable of establishing a critical analysis of the main effects of macroeconomic policy. Emphasis is put on the following skills: specific knowledge on macroeconomics; analysis and synthesis of information; problem solving; interdisciplinary communication; capacity for building complex arguments with supporting evidence; autonomous work; ability to analyze fundamental data of the Portuguese and European economy.
Syllabus:
0. Introduction 1. National Accounts 1.1. Circular flow of income 1.2. Fundamental Identities 1.2.1. Production approach 1.2.2. Income approach 1.2.3. Expenditure approach 1.3 Measurement criteria 1.3.1. GDP vs GNP 1.3.2. Liquid vs gross 1.3.3. Pm vs cf 1.3.4. GDP real vs GDPnominal 1.4. Data analysis 2. AS and AD curves 2.1. Aggregate supply and aggregate demand 2.2. The determinants of AD 2.3. The determinants of AS 2.4. Movements along the curves and shifts of the curves 2.5 The equilibrium 3. The classical perspective 3.1. Basic assumptions 3.2. The goods and services market 3.3. The labour market 3.4. The capital market 3.5 The overall balance 4. The Keynesian Macroeconomics 4.1. Basic assumptions 4.2. The consumption and savings function 4.3. The investment function 4.4. The governmental sector 4.5 The external sector 4.6. The equilibrium 4.7. The fiscal variables and the multiplier 5. Conclusions
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. SUBJET TO CHANGE TEST 1 - cap. 1 a 3 - 60% TEST 2 - cap. 4 - 25% - at the campus Completion of individual asynchronous exercises - 15%
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:
Dunnet, A. (1990). “Para compreender a economia”. Lisboa: Calouste Gulbenkian. Dornbusch, R. e Fischer, S. (1994). “Macroeconomia”. Boston: McGraw-Hill. Krugman, P. e Wells, R. (2014). “Introdução à Economia”, 3/e. Rio de Janeiro: Elsevier. Krugman, P. e Wells, R. (2018). “Economics.” NY: Worth Publishers. Mankiw, N. G. (2014). “Introdução à Economia.” São Paulo: Cengage Learning. Mankiw, N. G. e Taylor, M. P. (2017). “Economics.” Hampshire: Cengage Learning. Pinho, M. (2018). “Macroeconomia – Teoria e Prática Simplificada.” Lisboa: Edições Sílabo. Rossetti, J. P. (1990). “Introdução à Economia.” São Paulo: Atlas. Samuelson, P. e Nordhaus, D. (2005).“Macroeconomia”. London: McGraw-Hill. Samuelson, P. e Nordhaus, D. (1996). “Economia.” Lisboa: McGraw Hill. Santos, J., Pina, A., Braga, J. e Aubyn, M. (2016). “Macroeconomia.” Lisboa: Escolar Editora. Silva, J.C. (2011). “Macroeconomia”. Lisboa: Verlag Dashofer.