Main Field of Study and progress level:
Economics: Second cycle, has second-cycle course/s as entry requirements
Grading scale: Three-grade scale
Responsible department: Department of Economics
Revised by: Rector of Umeå School of Business and Economics, 2021-10-28
Contents
The course covers key areas in macroeconomic such as real business cycle theory and the implications of nominal rigidities and imperfect price adjustments. The course also deals with the aggregate consumption function and addresses the question of what factors may affect aggregate investments. The labor market also treated and here the focus is to understand why there may be unemployment in equilibrium. In this part of the course the focus is on the efficiency wage hypothesis, search theory, trade union models and implicit contracts. The course also covers the potential conflict of objectives that a policy-maker may have vis-à-vis the trade-off between unemployment and inflation.
Expected learning outcomes
After having completed the course, the student is expected to:
Know how to analyze what factors which may affect the equilibrium level of unemployment and know how to analyze how various policy measures affect the labor market.
Understand how to use real business cycle theory to analyze the underlying causes of economic fluctuations.
Know how to use modern investment theory to analyze what factors which may affect investment and the time path of capital over time.
Be able to analyze how different assumptions regarding the functional form of the utility function affect private saving and consumption decisions.
Required Knowledge
90 credits of which 75 credits in economics including 15 credits bachelor courses (G2F). Additionally, Mathematical Economics I D7 or the equivalent. Proficiency in English equivalent to the Swedish upper secondary course English 6.
Form of instruction
The teaching is a mix of standard lectures and exercises supervised by the teacher.
Examination modes
The examination consists of a written exam and assignments.
The result from assignments are only valid during the current semester. Students not having a Pass on assignments or seminars will be given addition, corresponding, parts on the final exam. A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date.
The following grading system will be used: Pass with Distinction (Väl Godkänd), Pass (Godkänd) or Fail (Underkänd).
It is normally not possible to make additional examinations to reach a higher grade. Exceptions can be made for a student with the grade Fail on any of the examinations if the examiner (not the lecturer) finds this appropriate. The task must be a minor undertaking, closely related to the learning outcome not reached, and performed in close proximity to the original examination.
When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the Dean of the Business School no later than two weeks before the next examination opportunity.
Credit transfer Academic credit transfers are according to the University credit transfer regulations.
