S1 – Principles of Macroeconomics

FSEG – Bachelor first year – EG

The slides for the lectures of Principles of Macroeconomics are available on Moodle. The final exam will consist in a multiple choice test with an open question.

Tentative syllabus

  • Chapter 1. Economics and Economies
    • Section 1.1 What do economists study?
      • The problem of scarcity
      • Demand and supply
      • Dividing up the subject
      • Macroeconomics
      • Microeconomics
      • Illustrating economic issues: the production possibility curve
      • Illustrating economic issues: the circular flow of goods and incomes
    • Section 1.2 Different economic systems
      • The classification of economic systems
      • The command economy
      • Assessment of the command economy
      • The free-market economy
      • Assessment of the free-market economy
      • The mixed economy
    • Section 1.3 The nature of economic reasoning
      • Economics as a science
      • Economics as a social science
      • Economics and policy
  • Chapter 2. An Introduction to Macroeconomic Issues and Ideas
    • Section 2.1 An overview of key macroeconomics issues
      • Major macroeconomic issues
      • Government macroeconomic policy
    • Section 2.2 Measuring national income and output
      • Three ways of measuring GDP
      • Taking account of inflation
      • Taking account of population: the use of per capita measures
      • Taking account of exchange rates: the use of PPP measures
      • Do GDP statistics give a good indication of a country’s standard of living?
    • Section 2.3 The business cycle
      • The distinction between actual and potential growth
      • The hypothetical business cycle
      • The business cycle in practice
      • An international business cycle
      • Aggregate demand and the business cycle
      • Aggregate supply and the business cycle
    • Section 2.4 The circular flow of income
      • The inner flow, withdrawals and injections
      • The relationship between withdrawals and injections
      • Equilibrium in the circular flow
    • Section 2.5 Unemployment
      • Claimant unemployment and standardised unemployment
      • The composition of unemployment
      • The duration of unemployment
      • Causes of unemployment
    • Section 2.6 Inflation
      • Different inflation rate measures
      • Causes of inflation
    • Section 2.7 The open economy
      • The balance of payments account
      • Exchange rates
      • The determination of the rate of exchange in a free market
      • Exchange rates and the balance of payments

Main reference

  • Sloman, J. and Guest, J. and Garratt, D. (2018). Economics. Pearson Education Limited.