Tags
GED, ID, PSc, EC
Admissions requirements
Principles of Economics (100) or instructor’s permission.
Description
The course offers theoretical and empirical insight on the interactions between households, firms, and government that illustrate economic behavior at aggregate level. Basic and simple models are developed to analyze three major macroeconomic variables: output, unemployment, and inflation.
To do so, this course is organized into three closely related themes: first, introduction to important macroeconomic concepts, variables, and data. Second, theories on macro economy in the long run (national income accounts, money and inflation, unemployment, and long term growth). Third, theories on short run business cycle (IS-LM) and stabilization policy (monetary and fiscal policies and government budget).
The first half of the block will be allocated for elaboration on the first and second themes. The second half of the block will focus on the third theme. A short essay (1500 words), due on the final exam date, will also be required. The list of individual essay topics will be distributed by the midterm exam date. For group presentation, the assignment and list of topics will be announced in the second week of the course.
Course objectives
Upon completion of this course, students will be able to:
Explain the underlying concepts of economic output, employment, and inflation.
Analyze how an economy grows in a long run, applying basic growth theories.
Identify the link between output, employment, and inflation in the short run.
Demonstrate how fiscal and monetary policy may stabilize the economy against short run business cycle and identify their policy limitations and trade-offs.
In practical sense, students will also be able to:
Review relevant long run and short run macroeconomic indicators.
Critically interpret contemporary macroeconomic news/reports in the media.
Timetable
Once available, timetables will be published here.
Mode of instruction
We will have interactive lectures in which we build solid understanding and intuitions on basic macroeconomics concepts. While we use real illustration as background in the lectures, deeper empirical analysis will be conducted through group presentation — where students are assigned to work specific issue using basic macroeconomic concept they learn and discuss it before the class.
Students are also expected to demonstrate his/her ability to apply their knowledge in an individual short essay. In the last week of the course, each student will give a mini 3-minutes seminar on the main finding of his/her essay.
Assessment
The assessment is based on:
1 (one) individual essay: 20% (Due in week 18)
Midterm written examination with short essay questions: 20% (week 15)
Final written examination with short essay questions: 25% (week 20)
Group presentation: 20% (week 14 and week 16)
Homework: 15% (average of 3 (three) short homework)
Blackboard
There will be a Blackboard site available for this course. Students will be enrolled at least one week before the start of classes.
Reading list
Cowen, Tyler and Alex Tabarrok, 2015, Modern Principles of Macroeconomics: 3rd edition, Worth Publisher.
Selected papers on relevant topics.
Registration
This course is open to LUC students and LUC exchange students. Registration is coordinated by the Curriculum Coordinator. Interested non-LUC students should contact course.administration@luc.leidenuniv.nl.
Contact
Akhmad Rizal Shidiq, email a.r.shidiq@hum.leidenuniv.nl