Course: Macroeconomics II

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Course title Macroeconomics II
Course code MUE/1MAK2
Organizational form of instruction Lecture + Seminar
Level of course Master
Year of study not specified
Semester Summer
Number of ECTS credits 5
Language of instruction Czech
Status of course Compulsory
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Lecturer(s)
  • Švarcová Jena, doc. Ing. Ph.D.
  • Damborský Milan, Ing. Ph.D.
Course content
Macroeconomics II Upper Intermediate Course Subject of macroeconomics, aggregation and interdependence of markets, static and dynamic macroeconomic modeling, long and short time horizon. - Macroeconomic aggregates and macroeconomic identities. System of National Accounts and changes in GDP methodology. - Static macroeconomic model of a long period and general equilibrium of markets, Walras law. Expenditure models are based on the Keynesian concept - consumption and savings, investment. Fisher's model; Modigliani's life cycle hypothesis and Friedman's permanent pension hypothesis. Expenditure multipliers, investments, Tobin q, net exports. - Money markets, banking system, monetary bases and monetary aggregates, quantitative theory of money. Money in time of cryptocurrency. Inflation theory, deflation, adaptive and rational expectations, Fischer equation of expected inflation. - Labor market, employment and unemployment, natural unemployment rate. Minimum wage as instrument in fiscal policy. - Degree of openness of the economy, fixed and flexible exchange rates, purchasing power parity theory, net exports and balance of payments, Marshall-Lerner hypothesis. - Dynamic long-term model - economic growth and its measurement. Sources of growth - the Sollow model and accumulation of capital, population growth, Cobb-Douglas production function. - Monetary and real cycles; IS-LM macroeconomic equilibrium model for closed economy and open economy IS-LM-BP Mundell-Fleming model. Aggregate supply and AS-AD model in open economy. Lucas's aggregate supply model reflecting the product's reaction to the deviation of the actual and expected price level. - Phillips curve - relation between inflation and unemployment; Okun's law. - Macroeconomic policy objectives and instruments. Monetary policy and theory, CNB and its instruments. - Fiscal policy and fiscal policy theory, IS-LM model in relation to government spending, taxes, transfers, stabilization fiscal policy.

Learning activities and teaching methods
Lecturing
  • Participation in classes - 39 hours per semester
  • Home preparation for classes - 32 hours per semester
  • Term paper - 18 hours per semester
  • Preparation for examination - 40 hours per semester
  • Preparation for course credit - 20 hours per semester
prerequisite
Knowledge
Macroeconomics I Microeconomics I
Macroeconomics I Microeconomics I
learning outcomes
explain the subject of macroeconomics, aggregation and interdependence of markets, static and dynamic macroeconomic models, with a long and short time horizon, in a closed economy and in an open economy.
explain the subject of macroeconomics, aggregation and interdependence of markets, static and dynamic macroeconomic models, with a long and short time horizon, in a closed economy and in an open economy.
describe macroeconomic expenditure models (two-sector, three-sector and four-sector) based on the Keynesian concept - consumption and savings, investments. Fisher's model of intertemporal choice; Modigliani's life cycle hypothesis and Friedman's permanent pension hypothesis.
describe macroeconomic expenditure models (two-sector, three-sector and four-sector) based on the Keynesian concept - consumption and savings, investments. Fisher's model of intertemporal choice; Modigliani's life cycle hypothesis and Friedman's permanent pension hypothesis.
clarify the concepts of the monetary base and monetary aggregates, the quantitative theory of money, the theory of inflation, deflation, the theory of adaptive and rational expectations, the Fischer equation of expected inflation.
clarify the concepts of the monetary base and monetary aggregates, the quantitative theory of money, the theory of inflation, deflation, the theory of adaptive and rational expectations, the Fischer equation of expected inflation.
describe the aggregates of the employment and unemployment rates, the theory of the natural rate of unemployment and its application in the Phillips curve (the relationship between inflation and unemployment) and Okun's law.
describe the aggregates of the employment and unemployment rates, the theory of the natural rate of unemployment and its application in the Phillips curve (the relationship between inflation and unemployment) and Okun's law.
to clarify the degree of openness of the economy, fixed and flexible exchange rates and their effects in four-sector models, measurement and modeling of the state's balance of payments, the Marshall-Lerner condition.
to clarify the degree of openness of the economy, fixed and flexible exchange rates and their effects in four-sector models, measurement and modeling of the state's balance of payments, the Marshall-Lerner condition.
explain business cycles and macroeconomic equilibrium models IS-LM and AS-AD for a closed economy and for an open economy IS-LM-BP Mundell-Fleming model.
explain business cycles and macroeconomic equilibrium models IS-LM and AS-AD for a closed economy and for an open economy IS-LM-BP Mundell-Fleming model.
describe a long-run dynamic model: economic growth and its measurement. Sources of growth - R. Solow's growth model, catch-up effect of economically backward countries, Cobb - Douglas production function
describe a long-run dynamic model: economic growth and its measurement. Sources of growth - R. Solow's growth model, catch-up effect of economically backward countries, Cobb - Douglas production function
explain the goals and instruments of economic policy, especially monetary policy in the IS-LM model, and fiscal policy in the IS-LM model.
explain the goals and instruments of economic policy, especially monetary policy in the IS-LM model, and fiscal policy in the IS-LM model.
Skills
assess the behavior of macroeconomic sectors, especially with the use of expenditure models.
assess the behavior of macroeconomic sectors, especially with the use of expenditure models.
evaluate whether the conditions for individual applied macroeconomic models are achieved in practice.
evaluate whether the conditions for individual applied macroeconomic models are achieved in practice.
calculate the achievement of macroeconomic equilibrium for specific conditions.
calculate the achievement of macroeconomic equilibrium for specific conditions.
calculate and evaluate the growth possibilities of the macroeconomy using the R. Solow model.
calculate and evaluate the growth possibilities of the macroeconomy using the R. Solow model.
use the advanced analytical tools of macroeconomics to describe and analyze real-world problems.
use the advanced analytical tools of macroeconomics to describe and analyze real-world problems.
calculate the effects of changes in the labour market using Okun's law.
calculate the effects of changes in the labour market using Okun's law.
assess the consequences of changing specific macroeconomic instruments in the government's economic policy.
assess the consequences of changing specific macroeconomic instruments in the government's economic policy.
teaching methods
Knowledge
Lecturing
Lecturing
assessment methods
Grade (Using a grade system)
Grade (Using a grade system)
Written examination
Oral examination
Oral examination
Written examination
Recommended literature
  • BACHANOVÁ,V.,MUSIL,P.,VYSTAVĚLOVÁ,L. Makroekonomie II cvičebnice. Brno:MUNI, 2005. ISBN 80-2103669-9.
  • HOLMAN, R. Ekonomie. 6. vydání. V Praze: C.H. Beck, 2016. ISBN 978-80-7400-278-6.
  • HOLMAN, R. Makroekonomie, středně pokročilý kurz, Sbírka řešených otázek a příkladů. Praha: C.H.Beck, 2018. ISBN 978-80-7400-723-1.
  • HOLMAN, R. Makroekonomie, středně pokročilý kurz, 3. vydání. Praha: C.H.Beck, 2018. ISBN 978-80-7400-541-1.
  • JUREČKA, V. Makroekonomie 3. Peaha: Grada, 2017. ISBN 978-80-271-0251-8.
  • KRUGMAN, P. R., WELLS, R. Macroeconomics. Fourth edition. New York: Worth Publishers, 2015. ISBN 978-1-4641-1037-5.
  • MANKIW, N. G. Macroeconomics 10th ed.,. 2019. ISBN 978-1-319-24358-6.
  • MANKIW, N. G. Macroeconomics 8th ed. international version. Houndmills. Basingstoke: Worth Publishers/Palgrawe Macmillan,, 2013. ISBN ISBN 978-1-4641-2.
  • MANKIW, N. G., TAYLOR, M. P. Macroeconomics. 3rd ed.. Andover: Cengage Learning, 2014. ISBN 978-1-4080-8197-6.
  • ONDRČKA, P. Rozšíření základů makroekonomické teorie. Vyd. 2. upravené. Zlín: Univerzita Tomáše Bati, 2006. ISBN 8073184494.
  • SCHILLER, B. R. Essentials of economics. 10th edition. Dubuque. IA: McGraw-Hill Education, 2016. ISBN 978-1259235702.
  • SOUKUP, J. Makroekonomie. Dotisk 2., aktualiz. vyd.. Praha: Management Press, 2012. ISBN 978-80-7261-219-2.


Study plans that include the course
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