Macroeconomics II D23, 7.5 credits

Contents

The course covers key areas in macroeconomics 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 is 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 policymaker 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 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

University: Courses in Economics at undergraduate level equal to 90ECTS (whereof 30ECTS C-level courses) including a Bachelor thesis of 15ECTS or the equal writing experience. In addition Mathematical Economics I D7 and Macroeconomics D22 or the equivalents are required. Students are also required to have English A from Swedish gymnasium or the equivalent.

Form of instruction

The teaching is a mix of lectures and exercises supervised by the teacher.

Examination modes

The examination consists of assignments and an individual written hall exam.

The following grading scale will be used for the course: Pass with Distinction (Väl Godkänd, VG), Pass (Godkänd, G) and Fail (Underkänd, U).

A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than two weeks before the next examination opportunity. A written request should be submitted to the Director of Studies no later than two weeks before the next examination opportunity.

Exceptions from examination form as stated in the syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the mode of examination should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on the adapted examination form. The decision must then be notified to the student.

Academic integrity and cheating

As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against a student who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to written assignments. Submitted material may be subject to plagiarism control. In addition, Umeå University rules and regulations for education on undergraduate and master's level apply.