[ 514INMAIMAU21 ] IK Introduction to Macroeconomics

Workload Education level Study areas Responsible person Hours per week Coordinating university
3 ECTS B1 - Bachelor's programme 1. year Economics Jochen G√ľntner 2 hpw Johannes Kepler University Linz
Detailed information
Original study plan Bachelor's programme International Business Administration 2021W
Objectives The students have knowledge of basic concepts in theoretical macroeconomics and empirical regularities in closed and open economies. They are able to use these concepts to analyze typical scenarios, such as economic recessions and the consequences of monetary and fiscal policy measures. They can read and understand general and specialized newspaper articles discussing national and global economic developments through a macroeconomic lens. The students know how equilibrium output and prices are determined in the goods market, how equilibrium interest rates and the quantity of money are determined in financial markets, how goods and financial markets interact, and how monetary and fiscal policy is conducted in developed economies. The students know how the labor-market equilibrium influences the economy in the medium run and that there is a trade-off between inflation in the long run. They also know how goods and financial markets differ in an open economy, and how the equilibrium exchange rate and the exchange rate regime of an open economy influences the short-run equilibrium. Accordingly, the students have extensive knowledge of the macroeconomic concepts of equilibrium in goods and financial markets in the short run as well as of equilibrium in the labor market in the medium run.
Subject Clarification of the following basic terms will be covered:

  • Demand and supply in the goods market
  • Demand and supply in financial markets
  • Interaction of goods and financial markets: The IS-LM Model
  • Money supply and interest rate (a.k.a. inflation) targeting
  • Demand and supply in the labor market
  • The Phillips-Curve, the natural rate of unemployment, and inflation
  • From short-run to long-run equilibrium: The IS-LM-PC Model
  • The goods market in the open economy
  • Output, the interest rate, and the exchange rate
  • Exchange rate regimes
Criteria for evaluation Written final exam, homework assignments
Methods Calculus, graphical analysis and interpretation, logical reasoning
Language English
Study material Lecture notes/slides, problem sets
Changing subject? No
Further information The IK Introduction to Macroeconomics complements the KS Introduction to Macroeconomics. The purpose of the IK is to provide students with an opportunity to deepen the knowledge from the KS by discussing the material and solving problem sets in class. Accordingly, the IK should be taken in the same semester together with the KS.
On-site course
Maximum number of participants 40
Assignment procedure Assignment according to priority