SAM3 Macroeconomics

• Topics

  The course will give the students an overview of key macroeconomic relationships and provide insights into the use of models to analyse these relationships in an open economy.

  The first part of the course covers central macroeconomic models of economic growth (Solow, Solow-Romer).

  The labour market, an important factor market, is discussed in detail where we also focus on institutions and settings in the European and the Norwegian labour markets.

  The course also addresses fluctuations in production and employment. Money, prices and inflation are introduced and discussed. The IS curve is derived with a special focus on consumption and investment behaviour. Following this, monetary policy and the MP curve are introduced. The supply side of the economy is introduced through the Phillips curve. The investment-savings (IS) curve, the MP curve and the Phillips curve are finally put together in a complete model of the aggregate economy, the so-called AS-AD model.

  With these buildings blocks, topics such as fiscal policy, monetary policy, the financial crisis, international trade and exchange rates are analysed and discussed.

  The course addresses issues of high relevance for both the Norwegian and the international economy.

• Learning outcome

  Upon completion of the course, the student can:

  Knowledge

  • Explain national accounts and understand how different transactions are measured in the national accounts and balance of payments
  • Outline key mechanisms behind economic growth
  • Explain macroeconomic fluctuations and the importance of expectations and frictions
  • Discuss possible effects of monetary and fiscal policy
  • Describe how the macroeconomic models relate to the recent developments in Norway and the international economy

  Skills

  • Analyse key mechanisms for economic growth, including the role of certain policy measures
  • Use a model to describe how the economy is affected by supply and demand shocks
  • Use a model to describe effects of fiscal and monetary policy
  • Use a model to analyse the effects of macroeconomic shocks in Norway and internationally

  General competence

  • Explain key macroeconomic conditions, to participate in discussions on macroeconomic questions and in simple terms, be able to explain key macroeconomic mechanisms
  • Know the challenges and possible solutions to long-term sustainability goals related to the welfare state, public finances and climate.

• Teaching

  The course consists of plenary lectures, quiz, solving assignments in groups, and one voluntary and one compulsory assignment.

• Required prerequisites

  The theory for the consumer and firm's adaptation from SAM2 is assumed known and understood.

• Compulsory Activity

  1 of 2 assignments must be approved (approved/not approved). The assignments are solved in groups of 2-3 students.

  Participation in at least 3 of 6 quizzes.

  Previously acquired course approvals are valid.

• Assessment

  3-hour digital school exam. All sub-questions must be passed in order to receive A-E.

  An assessment in SAM3 will be organised in the autumn semester of 2024 for students with a valid course approval. As of autumn 2023, only mandatory bachelor courses with an individual assessment will have an assessment in the non-teaching semester. This only applies to students with a valid course approval. The retake options that applies at all times are decided by the dean for the bachelor program and will be published in the course description.

• Grading Scale

  A-F

• Literature

  • Macroeconomics (3rd edition eller nyere), Charles I. Jones, W. W. Norton & Company, chapters 1-21
  • Report No. 1, National budget (latest edition), chapters 1 and 2
  • Additional supplementary readings will be introduced during the course

• Permitted Support Material

  One bilingual dictionary (Category I)

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/