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The University of Southampton

ECON1002 Principles of Macroeconomics

Module Overview

This course provides an introduction to the main theories explaining the aggregate (or macro) behaviour of the economy. It starts by discussing how key macro variables are measured before turning to theories that explain the behaviour of the economy in the short and long run. Using this foundation, we discuss the main tools of macroeconomic policy (monetary and fiscal policy) and their role in stabilising the economy. We conclude by exploring the uses of macro policy in economies with international trade and turbulent financial markets. One of the pre-requisites for ECON1004, ECON2002, ECON2004 and ECON3027

Aims and Objectives

Module Aims

• Understand the measurement and limitations of key macroeconomic variables; • Understand the potential and limits of macroeconomic policy; • Explain the causes and consequences of the Financial Crisis

Learning Outcomes

Learning Outcomes

Having successfully completed this module you will be able to:

  • Solve new problems using mathematics and economic reasoning
  • Communicate economic ideas via diagrams and in writing


1. Intro to Macroeconomics 2. The long run: Economic growth and development 3. The short run: Business cycles and stabilization policy 4. Topics in Macroeconomics: Monetary and Fiscal Policy, The Financial System, International Finance and Exchange Rates, The Global Financial Crisis.

Learning and Teaching

Teaching and learning methods

Lectures and classes.

Independent Study118
Total study time150


Assessment Strategy

The method of assessment for this module is based on the in-course tests (10%) and a two-hour final examination (90%). In the event of resit of this module, in-course test marks will not be carried forward.


MethodPercentage contribution
Exam  (2 hours) 90%
Online test 5%
Online test 5%


MethodPercentage contribution
Exam 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Prerequisites: ECON1005 OR ECON1007

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