Prin­ciples of Macro­economics

About

The aim of this course is to introduce students to the foundations of macroeconomics. We will explore how the economy functions in the short run and the medium run, with a focus on the goods market, the financial market, and the labor market. The course will help students understand how these markets operate individually, how they interact, and how they respond to shocks and macroeconomic policies.

Why do economies sometimes expand—raising employment and living standards—while at other times they contract? What happened in 2008–09, when the world experienced its deepest downturn since the Great Depression of the 1930s? More recently, why did we witness a global surge in inflation in 2021, with many countries recording their highest rates in decades? How did governments respond to these different crises, and how effective were their policy measures?

More broadly, which shocks shape macroeconomic activity? How do such shocks influence output, employment, investment, consumption, and inflation? To what extent can policymakers foster growth? And can governments and central banks prevent economic downturns, rising unemployment, or surging inflation?

These are some of the central questions that drive macroeconomics. If you are curious about how macroeconomists study the world, how they build models, and how those models help answer questions like these, then this course is for you.

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:

Explain basic macroeconomic terminology in a comprehensive way.

Describe and explain the key assumptions and mechanisms underlying the main macroeconomic models (such as the IS–LM model and the IS–LM–PC model). Use graphical illustrations to support your explanation, and provide algebraic solutions to the models.

Describe how output is determined in the short run and the medium run. Explain how output is affected by shocks.

Describe the main determinants of other key macroeconomic variables—such as inflation, unemployment, real wages, and interest rates—and explain how these variables respond to different types of shocks.

Conduct policy experiments (such as changes in government spending or adjustments in the money supply). Explain the underlying mechanisms both verbally and graphically, and provide the corresponding algebraic solutions

Course leader

Annaïg Morin - Department of Economics (ECON)

Target group

This is a bachelor level course. CBS Summer University courses at Copenhagen Business School is open to all and welcomes domestic and international students as well as professionals

Fee info