Course syllabus MAE - Macroeconomics I (ŠAVŠ - SS 2019/2020)

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Course title: Macroeconomics I
Semester: SS 2019/2020
Course supervisor: PhDr. Jiří Malý, Ph.D.
Supervising department: Department of Law and Economics (ŠAVŠ)
Prerequisites for registration: not Bachelor state examination
Time allowance: full-time, 1/2 (hours of lectures per week / hours of seminars per week)
Type of study: usual
Form of teaching: lecture, seminar
Mode of completion and credits: Fulfillment of requirements (5 credits), Exam (5 credits)
Course objective:
The aim of the course is to acquire knowledge about the functioning of the economy from the macroeconomic perspective and about main macroeconomic indicators and their importance. Emphasis is placed on the ability of students to define main macroeconomic indicators and to interpret their developments, to understand the measurement of economic performance, the functioning of the money market and of the foreign exchange market, to understand the issues of economic growth, business cycles, unemployment, inflation and balance of payments. After completing the course students are able to assess macroeconomic developments, to explain the consequences of monetary and fiscal policies, and to analyse current macroeconomic issues.
Course methods: In the full-time mode of study, the course consists of lectures and seminars. In the part-time mode of study, the course is based on tutorial sessions. Students can also avail the possibility of consultations during the teacher's consulting hours.
Course content:
1.Introduction to Macroeconomics (allowance 1/2)
a.Economics and its divisions, microeconomics and macroeconomics
b.Subjects and circular flow in macroeconomics
c.Main macroeconomic indicators, basic macroeconomic identity
d.State intervention in the economy

2.Economic Performance Indicators (allowance 1/2)
a.Gross domestic product, methods of calculating GDP, nominal and real GDP
b.Net domestic product, gross national income, net national income, disposable income
c.International comparisons of GDP

3.Expenditure-Output Model (allowance 1/2)
a.Consumption and consumption function, savings and saving function, planned and unplanned investment
b.Equilibrium GDP, multiplier effect
c.Equilibrium GDP and expenditure multiplier in a two-sector economy
d.Equilibrium GDP and expenditure multiplier in a three-sector economy
e.Equilibrium GDP and expenditure multiplier in a four-sector economy

4.Money and Money Market (allowance 1/2)
a.Money, currency, functions of money
b.Money supply, monetary aggregates, banking system, deposit multiplication
c.Demand for money, motives for holding money
d.Money market, equilibrium in the money market
e.Nominal and real interest rates

5.Aggregate Demand and Aggregate Supply (allowance 1/2)
a.Aggregate demand, factors affecting aggregate demand
b.Long-run aggregate supply, potential output, factors affecting long-run aggregate supply
c.Short-run aggregate supply, factors affecting short-run aggregate supply
d.Short-run and long-run macroeconomic equilibrium

6.Business Cycles and Economic Growth (allowance 1/2)
a.Business cycle and its phases, output gap, synchronization of business cycles
b.Demand and supply shocks
c.Political business cycle theory
d.Economic growth, sources of economic growth

7.Unemployment (allowance 1/2)
a.Unemployment and its measurement, unemployment rate
b.Labour market, equilibrium and disequilibrium in the labour market
c.Types of unemployment, natural unemployment rate, Okun's law
d.Voluntary and involuntary unemployment, long-term unemployment
e.Employment policy

8.Inflation (allowance 1/2)
a.Inflation and its measurement, inflation rate
b.Deflation, disinflation, accelerating inflation, inflation expectations
c.Causes of inflation, severity of inflation, consequences of inflation
d.Anti-inflationary policy
e.Short-run and long-run Phillips curves

9.Exchange Rate (allowance 1/2)
a.Nominal exchange rate, foreign exchange market, equilibrium in the foreign exchange market
b.Absolute and relative purchasing power parity, interest rate parity
c.Real exchange rate
d.Exchange rate regimes, foreign exchange reserves, foreign exchange intervention

10.Balance of Payments and External Debt (allowance 1/2)
a.Balance of payments and its components
b.Equilibrium and disequilibrium in the balance of payments
c.External debt, international investment position

11.Monetary Policy (allowance 1/2)
a.Monetary policy, its objectives, instruments and effectiveness
b.Central bank and its functions
c.Expansionary and contractionary monetary policy
d.Neutrality of money
e.Types of monetary policy

12.Fiscal Policy (allowance 1/2)
a.Fiscal policy, its objectives, instruments and effectiveness
b.Public budgets and their balance, public debt
c.Taxes and Laffer curve
d.Expansionary and contractionary fiscal policy
e.Types of fiscal policy

Learning outcomes and competences:
After completing the course, student:
-Will define basic macroeconomic aggregates, will interpret resulting macroeconomic values
-Will explain the scheme of ties/links between macroeconomic subjects
-Will explain the specifics of aggregate and monetary markets, will know the theory of economic growth
-Will understand the cause of selected macroeconomic issues, will comprehend their consequences (professional discussion)
-Will understand the principles of expansive fiscal policy and monetary policy, of restrictive fiscal policy and monetary policy and their consequences

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendance
Direct teaching
     Attendance of lectures12 h
     Attendance of courses/seminars/tutorials24 h
     Consultations with teacher (part-time form of study)0 h
     Course reading and ongoing preparation12 h
     Ongoing evaluation32 h
     Preparation for final test30 h
     Preparation for final oral exam30 h
Total140 h
Assessment methods:
Requirement typeDaily attendance
Active lecture/seminar/workshop/tutorial participation10 %
Mid-term test(s)40 %
Final test25 %
Final oral exam25 %
Total100 %
Course completion:
The course is completed by exam.
Students are evaluated on the basis of the following criteria:
1. Presence and active seminar/tutorial participation - maximum score of 10 points
2. Two mid-term tests - maximum score of 20 points for each mid-term test (maximum score of 40 points together)
3. Final test - maximum score of 25 points
4. Final oral exam - maximum score of 25 points

The mid-term tests take place during the semester at predetermined and announced dates. Students have only one attempt to pass each mid-term test. Only a student who has obtained at least 30 points for an active seminar/tutorial participation and mid-term tests during the semester can enrol for the exam.

The exam consists of the final test and the final oral exam. The student has to pass the final test at least by 60% (i.e. at least by 15 points) to attend the final oral exam. To complete the course successfully, it is necessary to obtain at least 60 points for the active seminar/tutorial participation, the mid-term tests, the final test and the final oral exam.

Classification scale by total score:
90-100 points...excellent (1)
75-89 points.....very good (2)
60-74 points.....good (3)
0-59 points.......failed (F)
Support for combined/distance forms of study:
Lecture presentations and other study materials on the document server of the Academic information system. Consultations with the teacher via the school e-mail boxes or via personal meetings during the teacher's consulting hours.
Reading list:
Language of instruction: Czech
PAVELKA, T. Makroekonomie. Základní kurz. Praha: Vysoká škola ekonomie a managementu, 2010. 278 p. ISBN 978-80-86730-55-4.
MANKIW, N G. Zásady ekonomie. Praha: Grada Publishing, 2009. 768 p. ISBN 978-80-7169-891-3.
FRANK, R H. -- BERNANKE, B S. Ekonomie. Praha: Grada Publishing, 2003. 804 p. ISBN 80-247-0471-4.

Language of instruction: Czech
HOLMAN, R. Ekonomie. Praha: Nakladatelství C. H. Beck, 2016. 720 p. ISBN 978-80-7400-278-6.
SAMUELSON, P A. -- NORDHAUS, W D. Ekonomie. Praha: NS Svoboda, 2013. 716 p. ISBN 978-80-205-0629-0.

Study plans:
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Run in the period of: WS 2020/2021, WS 2019/2020, SS 2018/2019, WS 2018/2019, SS 2017/2018, WS 2017/2018 (and older)
Course tutor: Ing. Šárka Dvořáková, Ph.D. (examiner, instructor, lecturer)
PhDr. Jiří Malý, Ph.D. (supervisor)
Teaching language: Czech
Room: Mladá Boleslav

Last modification made by Mgr. Luděk Švejdar on 01/21/2020.

Type of output: