Macroeconomic Policy 2 | ECON2002 | University of Southampton

Module overview

The main objective of this module is to provide analytical understanding of how economic policy affects macroeconomic outcomes. The main macroeconomic outcome that we will look at is output (what we usually measure as GDP). We will approach the study of the evolution of output from two very different time horizons. First, we will look at the long-run trend of output, that is, we will study why economies grow and which policies might help promote growth. Secondly, we will look at the short-run fluctuations of output. We will try to understand the patterns behind economic booms and busts and we will study which are the effects of different fiscal and monetary policies.

Pre-requisite for ECON3008

Linked modules

Pre-requisites: ECON1002 and (ECON1005 or ECON1008) and ECON1007

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

how economic policy affects macroeconomic outcomes

Syllabus

Part 1: The Economy in the Long Run

1. Determinants and Distribution of National Income

2. Money and Inflation

3. Basic Explanations for Unemployment

Part 2: Growth Theory, The Very Long Run

4. The Solow Model

5. More on Growth

Part 3: The Economy in the Short Run

6. Economic Fluctuations

7. The IS-LM Model

8. Macroeconomic Policy using the IS-LM Model

9. Aggregate Supply

Part 4: More on Macroeconomic Policy

10. New Perspectives on Stabilisation Policies

11. New Perspectives on Public Debt and Deficits

Learning and Teaching

Teaching and learning methods

Lectures and classes.

Study time
Type	Hours
Teaching	25
Independent Study	125
Total study time	150

Resources & Reading list

Textbooks

Charles Jones (2017). Macroeconomics. W.W. North & Company.

(2019). Macroeconomics.

Olivier Blanchard (2018). Macroeconomics. Pearson.

Assessment

Assessment strategy

The final mark for the module will be determined by a final examination (worth 70% of the mark), two coursework assignments in form of problem sets (10% each) and online tests (10%). This is accompanied by formative assessment in form of problem sets, which will be discussed in tutorial sessions and are designed to help you put in practice the concepts covered in lectures, and also aid your preparation for the final examination. The same applies for internal repeat. Assessment for external repeat and referral is form of 100% final examination.

Summative

This is how we’ll formally assess what you have learned in this module.

Breakdown
Method	Percentage contribution
Online test	10%
Final Assessment	70%
Coursework assignment(s)	10%
Coursework assignment(s)	10%

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Breakdown
Method	Percentage contribution
Final Assessment	100%

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Breakdown
Method	Percentage contribution
Final Assessment	100%

Repeat Information

Repeat type: Internal & External