SYLLABUS
Macroeconomics
Faculty of Economics, Matej Bel University Banska Bystrica, 2010/2011
Number of lessons per week: 3
Recommended study period: 2nd semester
The way of completion of the course: written test
Teacher: Ing. Mária Horehájová, PhD.
Ing. Žaneta Lacová, PhD.
COURSE OUTLINE
1. Macroeconomic Goals and Terms
Definition of Macroeconomics. Major Goals of Macroeconomic policy.
Macroeconomic Policy Instruments. Magic Quadrangle. Realization of
Macroeconomic Goals.
2. Aggregate Supply and Demand
Aggregate Demand and AD Curve. Major Components of AD. Aggregate Supply and
AS Curve. Different AS Curve Models. Macroeconomic Equilibrium.
3. Macroeconomic Aggregates. Measuring Economic Efficiency.
Gross National Product. Real and Nominal GNP. GNP Deflator. GDP, NDP, NI, PI,
DI, NEW. Two Measures of GNP. Product Approach. Earnings or Cost Approach.
4. Consumption, Saving and Investment
The Consumption Function. Determinants of Consumption. Propensity to Consume.
Determinants of Investment. The Saving Function. Propensity to Save. The multiplier.
Saving, Investment and macroeconomic Equilibrium.
5. Money and Money Market
The Banking System. The Quantity Theory of Prices. The Deposit Multiplier. The
Money Multiplier. Monetary Aggregates. The Money Market. Money Supply and
Money Demand.
6. Monetary Policy
Goals of Monetary Policy. Monetary Policy Instruments. The Monetary Transmission
Mechanism. Expansionary Monetary policy. Tight Monetary policy. Short-run and
Long-run Effects of Monetary Policy.
7. Fiscal Policy
Fiscal Policy Goals and Instruments. State Budget. Budget Surplus and Budget
Deficit. Government Debt. The Government Expenditure Multiplier. The Tax
Multiplier. Expansionary Fiscal Policy. Restrictive Fiscal Policy.
8. Inflation
The Rate of Inflation. The Impact of Inflation. The Three Categories of Inflation.
Demand-Pull Inflation. Cost-Push Inflation. Stagflation.
9. Unemployment
Labor Market and The Unemployment Rate. The Three Categories of Unemployment.
The Causes of Unemployment. The Natural Rate of Unemployment. The Vertical
Long-Run Phillips Curve. Impact of Unemployment.
10. Economic Growth
The Sources of Economic Growth. The Neokeynesian Growth Model. The
Neoclassical Growth Model.
11. Business Cycle
The Three Types of Business Cycle. Major Phases of Business Cycle. Business Cycle
Theories.
12. International Trade
The Sources of International Trade. The Principle of Comparative Advantage. Balance
of International Payments. Protectionism and Free Trade. Exchange rate. International
Monetary System.
EXAMS
There will be two written tests. The first written test will be in the middle of semester
and the second one at the end of semester. Possible points per test range from 0 to 50
points. The maximum number of points is 100 and the minimum number of required
points is 65. There is one resit exam possible as a comprehensive final test in the
period of final exams.
STUDY RESOURCES:
1. Samuelson, P.A. – Nordhaus, W. D. Economics. McGraw-Hill Inc. 1992.
2. McConnell, C. R. Economics : Principles, Problems and Policies. McGraw-Hill
Inc. 1990.
3. Slavin, S. Introduction to Economics. IRWIN, 1991.
4. Sloman, J. Economics. Prentice Hall. 2006
5. Mankiw, N. G. Essentials of Economics, Harcourt College Publisher, 2001.