Macroeconomics I

Code:

1EC204

Acronym:

MACI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2023/2024 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Bachelor in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	324	Bologna Syllabus since 2012	2	-	6	63	162

Teaching language

Portuguese

Objectives

The aim of Macroeconomics I 1EC204 is to introduce students to the analysis of aggregate fluctuations of contemporary economies, including the conduct and impacts of monetary and fiscal policies.
In providing students the core conceptual and theoretical background of modern macroeconomics, this curricular unit is closely related to Macroeconomics II 1EC210, as well as with Economic Growth 1EC301 and Monetary Economics 1EC302.
The course focuses on (i) basic concepts and measurement of the main macroeconomic variables, (ii) core models for short-term macroeconomic analysis, and (iii) microeconomic foundations for modelling private aggregate demand.
Further topics such as (a) modelling the short-term functioning of open economies, (b) analysis of the labour market in a macro perspective, (c) modelling the dynamics of the macroeconomy from the short-run to the long-run, and (d) discussing the institutional design of macroeconomic policies, are addressed in Macroeconomics II 1EC210.
 

Learning outcomes and competences

The curricular unit is to provide students with the following main abilities.

To distinguish macroeconomics from the other fields of Economics.

To master the key concepts and technical issues in the measurement of the main macroeconomic variables.

To be aware of the main contemporary macroeconomic issues, and to be able to analyse them in the framework of an adequate model, as well as to be aware of the limitations of the models learned so far. 

To be capable of critically reading articles and opinion collumns in newspapers or magazines specialized in economics, as well as to understand the main messages of short-term macroeconomic analysis bulletins issued by institutions of economic analysis.

To have the basic knowledge and the motivation for studying more advanced topics of macroeconomics, such as models with financially open economies, models with inflation and therefore with the dynamics of adjustments from the short to the long-run, political economy issues of monetary and fiscal policies, and models of long-run economic growth.

 

Working method

Presencial

Program

Part I. Introduction
1. What is Macroeconomics?
2. The measurement of Aggregate Economic Activity

Part II Macroeconomics in the Short-Run - The Keynesian Model
3. The Market for Goods and Services and the Simple Keynesian Multiplier
4. Money Market, IS-LM Model, and Fiscal and Monetary Policies
5. Central Bank and the Banking System, IS-TR Model

Part III Microeconomic foundations of Aggregate Demand
6. Intertemporal Budget constraints
7. Private Aggregate Demand for Goods and Services

Mandatory literature

Burda, Michael e Wyplosz, Charles; Macroeconomics: A European Text, 7th Edition, Oxford University Press, 2017. ISBN: 978-0-19-873751-3

Complementary Bibliography

Gordon, Robert J.; Macroeconomics, Twelvth Edition, Pearson, 2012. ISBN: 978-0-13-272767-9
Aurora Teixeira, Sandra Silva, Ana Paula Ribeiro, Vitor Carvalho, Manuel Duarte Rocha e Rui Henrique Alves; Fundamentos Microeconómicos da Macroeconomia – exercícios resolvidos e propostos, 6ª Edição Revista e Aumentada, Vida Económics, 2023

Teaching methods and learning activities

Classes are theoretical-practical. The teacher (i) presents the subjects – concepts, theories, models; (ii) solves analytical and/or numerical exercises, and (iii) presents and discusses real world macroeconomic statistical data that illustrates the topics taught.
In each chapter, some topics may be subject to a deepening through autonomous study by each student, with eventual questions later on answered or discussed in a support session.

The support material for classes and autonomous study is updated at the UC's Moodle.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	103,50
Frequência das aulas	58,50
Total:	162,00

Eligibility for exams

Assessment abides by the following rules and procedures:

- There are two alternatives: distributed assessment without final exam, or assessment with a final exam.

- Distributed assessment without final exam comprises three partial tests.

- The first and second tests take place during the lecturing period of the semester, but in a day and hour different from those of the lectures of the curricular unit; the third test takes place in the day and time of the final exam.

- The topics assessed in each of the three tests are not directly assessed in the other tests.

- The final grade corresponds to the weighted average of the grades obtained (rounded to one decimal).

- The student is approved in distributed assessment without final exam if he/she obtains
(i) final grade equal to or greater than 9.5 values,
and (ii) grade equal to or greater than 9.5 in Test 1,
and (iii) grade equal to or greater than 7.0 in Test 2,
and (iv) grade equal to or greater than 7.0 in Test 3.

- The final exam, both in the first (regular) call and in the second (retake) call, comprises the whole topics covered in the curricular unit. It consists of a written individual exam. Students are approved with a grade of no less than 9.5.


- Students that fail to obtain approval in the first  call or in the distributed assessment without exam, may attend the second (retake) call of the final exam.

Calculation formula of final grade

Distributed assessment without final exam:

- final grade = 0.3*Test 1 + 0.4*Test 2 + 0.3*Test 3

(if the student has obtained a score higher or equal to 9.5, 7.0 and 7.0 in  Tests 1, 2 and 3, respectively)

+ bonus of up to 1 grade point for completing the Banco de Portugal StatFlix course (via Moodle, until December 15, 2023)

Examinations or Special Assignments

Specific instructions and deadlines/dates for each evaluation component are updated at the UC's Moodle

Special assessment (TE, DA, ...)

 

In accordance with the general Law and regulations, as well as with the regulations in force at FEP.

Classification improvement

Attempts at improving the final grade may only be made in a final exam.