Macroeconomics I

The course gives an introduction to basic macroeconomics with a main focus on business cycles. With the use of simple models, the relationships between important macroeconomic variables, such as consumption, investment, unemployment, inflation, interest rates, exchange rates and the trade balance, are analyzed. The course emphasizes (i) how economic policy, such as fiscal and monetary policy, affects the economy, and (ii) how changes in conditions that do not originate from national policy, such as changing business cycles or interest rates on the world market, affect the economy.

Knowledge:

Students should

• Be able to explain the developments in the Norwegian and international economy
• Define key macroeconomic concepts as they are defined in the national accounts and explain the accounting relationships in the national accounts
• Discuss central macroeconomic models relevant to the Norwegian economy
• Understand how monetary and fiscal policy impact activity levels, interest rates, exchange rates, trade balance, consumption, and investment
• Comprehend the relationship between the labor market and the rest of the economy, as well as unemployment and inflation targeting
• Analyze how openness to trade and capital flows between countries affects the economy and the effects of economic policies
• Be able to relate macroeconomic topics to other subjects included in the bachelor’s program, such as business economics and microeconomics
• Understand how businesses can utilize macroeconomic knowledge.

Skills:

Upon completing the course, students should

• Understand key macroeconomic relationships.
• Be able to analyze the prevailing macroeconomic situation
• Possess knowledge of factors influencing the real economy and insight into how economic policies can be formulated.
• Utilize macroeconomic models to discuss the effects of economic policies and other influences to which the economy is subjected.
• Connect economic theories to developments in the Norwegian and international economies.
• Use macroeconomic theory to analyze how businesses, households, and the national economy are affected by changes in the economy and economic policies.
• Apply knowledge of macroeconomics to enhance business economic outcomes.

General competence:

• Competent in asking critical and analytically sound about macroeconomic developments and see the relevance for the individual company. Follow macroeconomic reasoning related to the subject, for example in connection with public debate and professional investigations. Show how macroeconomic development (growth, interest rate and exchange rate) as well as economic policy affect the real economy and the economic choices within companies.

2 hours of lectures every week and 2 hours of practical assignment every other week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.