A95325 Economics II

Ability to understand the real world by using macroeconomic models. Ability to make reasonable predictions on the evolution of the main macroeconomic dimensions: GDP, interest rate, level of prices, growth, exchange rate.

In this course, you will learn the basic models used by macroeconomists to explain the interplay and evolution of the main macroeconomic variables: GDP, inflation, unemployment rate, interest rate, exchange rate, policy variables and aggregate demand. The core of the course will focus on the analysis in the short (the IS-LM model), medium (the AD-AS model) and long run (the growth model). Additional topics include the role of expectations in the short and medium run and the analysis of the IS-LM model in open economy.

Evaluation will be based on two midterm exams, each counting for 50% of the final mark. Dates of the two midterm exams will be communicated during the course.

In case of not attending the midterm exams or not obtaining at least 18/30 as an average of the two midterm exams, student will attend an overall exam.

Both midterm and overall exams have the same structure. In each exam, you will find three sections. Each of the first two sections contain two statements. You must understand whether the statement is true or false and explain the reasons of your answer by using a proper graphical and theoretical explanation. The third section contains an exercise that is split into subsequent questions. Each of the three sections counts for 10 points. The final grade of an exam is given by the sum of the scores in the three sections.

For the summer and autumn sessions the exam will be oral.