Economics II

Teacher(s)

Latzer Hélène;

Language

English

Learning outcomes

At the end of this learning unit, the student is able to :

define and distinguish between the main macroeconomic variables; describe and explain the existing relationships and interactions between those macroeconomic variables; use graphical and algebraic models that clarify these relationships; analyze the effects of macroeconomic shocks; describe the various macroeconomic policy instruments and discuss their effects.

Content

1. The main macroeconomic variables and the National Accounts
2. Measuring aggregate prices and their evolution through time
3. The monetary system
4. The labor market
5. The market for goods and services
6. The short-run macroeconomie equilibrium: the IS-LM model
7. The medium-run macroeconomic equilibrium: the AD-AS model
8. Inflation and unemployment: the IS-LM-PC model
9. Opening the economy: an introduction
10. The market for goods and services in the open economy
11. The Mundell-Fleming model
12. Long-run growth: the Solow model

Teaching methods

1. Plenary lectures:
During the plenary lectures, the professor presents the concepts and mechanisms associated to the different models.
The lectures follow the course outline presented above.

2. Exercise sessions (TA sessions):
Exercise sessions are carried out in small groups and aim at checking knowledge acquisition as well as applying the theoretical concepts presented in class to solve exercises and case studies. Students should review the corresponding lectures before the session to draw full benefit from them. 

Evaluation methods

The final grade is based on a closed-book written exam covering the entire course material.
The exam questions are based on the learning outcomes expected for the different chapters of the course.
The exam grade is the arithmetic sum of the points obtained on the different exam questions.

Bibliography

The reference book for this course is: Economics, an Introduction, Ooghe et al, AccoLearn, 1st English edition (KUL textbook). The slides made available on the Moodle webpage of the course are however the main and mandatory reference for the course. 

Teaching materials

• Slides available on the Moodle webpage of the course: those slides are the mandatory reference for the course.

Faculty or entity

> ESPB