Macroeconomics is the study of a country's economy as a whole. The subject deals with phenomena such as sustained economic growth, including both immediate and fundamental causes, cyclical fluctuations and economic crises, unemployment, inflation and balance of payments. Analysis of how the government can improve macro-economic development through fiscal policy, monetary policy, and structural policy (rules and institutions) is very important in this field.

Macroeconomics I focuses on essential terminology and relationships, and long run economic growth and development. Macroeconomics I is a foundation for the course Macroeconomics II, which is more concerned with business cycles and economic stabilization policy. The course requires mathematical skills at the level of the bachelor program in business.

Course content

1. National accounts and economic indicators
2. Population development, population trends, and long-run sustainability.
3. Long-term economic growth and income distribution between labor and capital.
4. The Solow model of capital accumulation and economic growth in the long term.
5. Human capital, innovations, digitalization, and technological progress.
6. Productivity and efficiency.
7. The importance of political and economic institutions and policy for national income and wealth.
8. Income inequality, economic growth, and long-run sustainability.
9. Natural resources, the environment and economic growth
10. Structural unemployment: frictions in employment market, as well as wage and price setting.
11. Monetary Neutrality: The distinction between the real economy and nominal variables such as money, credit, price levels and exchange rates, nationally and internationally.
12. Long run effects of fiscal policy.


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