[ 514INMA21 ] Subject Introduction to Macroeconomics

Workload Mode of examination Education level Study areas Responsible person Coordinating university
6 ECTS Accumulative subject examination B1 - Bachelor's programme 1. year Economics Jochen G√ľntner 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 The students have knowledge of demand and supply in the goods market, demand and supply and financial markets, and the interaction of goods and financial markets in the IS-LM Model in the short run. They are aware of monetary policy conducted in the form of money supply and interest rate (a.k.a. inflation) targeting. The students have knowledge of the determinants of labor-market equilibrium, the so-called Phillips Curve (PC), the Natural Rate of Unemployment, and inflation in the medium run. The students understand how the economy converges from the short-run to the long-run equilibrium in the IS-LM-PC Model. The students have seen the open-economy versions of goods and financial markets in macroeconomics and how they interact with the exchange rate and exchange rate regime of an open economy.
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