Learning Partnerships, Unit Catalogue 2008/09 |
AS00034 Macroeconomics |
| Credits: 12 |
| Level: Foundation |
| Semester: 2 at City of Bath College |
| Semester: 2 at Wiltshire College |
| Assessment: CW 30%, EX 70% |
| Requisites: |
| Before taking this unit you must take AS00033 |
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Aims:
* To provide students with a basic knowledge of macroeconomics and its applications. * To enable students to solve economic problems relating to the national and international economy. * To understand how fiscal and monetary policy impact on variables such as inflation, unemployment, economic growth and the balance of payments. Learning Outcomes: On successful completion of this unit, students will be able to: * Understand economic linkages between households, firms and government and how these determine the national income. * Understand the determinants of Aggregate Demand. * Be able to explain the multiplier and discuss the significance for fiscal policy. * Analyse the possibility of an inverse relationship between inflation and unemployment and considering whether it exists in practice. * Be able to explain the various accounts of the Balance of Payments and discuss what factors influence the demand for exports and imports (e.g. the real exchange rate, foreign income, domestic income). Skills: Economic problem solving and mathematical equations (assessed through assessments) and key transferable skills. Content: * Circular flow of income. * Components of Aggregate Demand. * Keynesian - cross model of income determination. * Solving for the multiplier, implication for fiscal policy. * Definition of the money supply and tools and instruments of monetary policy. * A D/AS model and derivation of the equilibrium price and output model. * Introduction of the IS/LM model. * Unemployment: types of unemployment and flow model of unemployment inflation: determinants of cost push and demand pull inflation. - Open economy macro economics: exchange rates and the Balance of Payments. |