Course content

The course gives an introduction to basic macroeconomics with a main focus on business cycles. With the use of simple models, the relationships between important macroeconomic variables, such as consumption, investment, unemployment, inflation, interest rates, exchange rates and the trade balance, are analyzed. The course emphasizes (i) how economic policy, such as fiscal and monetary policy, affects the economy, and (ii) how changes in conditions that do not originate from national policy, such as changing business cycles or interest rates on the world market, affect the economy.

Learning outcome

Knowledge

You learn

• about the development of the Norwegian and the international economy
• essential macroeconomic concepts and relationships, as defined in the national accounts
• short run macroeconomic models relevant to the Norwegian economy; how monetary and fiscal policies affect activity levels, interest rates, exchange rates, trade balance, consumption and investment.
• about the relationship between the labor market and the rest of the economy, and about unemployment and inflation targeting
• about how openness between countries affects the economy and the effects of economic policies
• to relate theory to practical policy analyses, like the National Budget and the Monetary Policy Report

Skills

You should be able to

• use macroeconomic models to discuss the effects of economic policies and other shocks affecting the economy
• analyze the economic situation of an economy
• relate the economic theories to the development of the Norwegian and the international economy
• use macroeconomic theory to analyze how firms, households and the national economy are affected by changes in the economy and in economic policies

General competence

You should be able to

• follow economic reasoning related to the course in the public debate and professional reports

Learning methods and activities

2 hours of lectures every week and 2 hours of practical assignment every other week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

Compulsory assignments

• Mandatory activity

Recommended previous knowledge

None

Required previous knowledge

None

Course materials

Announced at the beginning of the term

Credit reductions