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Parent Programme
Bachelor of Business (Level 7 NFQ)
NFQ Level & Reference
Level 6 / Ref: M2.3
Duration
12 Weeks X 2.5 Hours per week
MODULE TITLE
Macroeconomics
STAGE
2
Module Credit Units
ECTS: 5

Macroeconomics Module

Introduction

This Macroeconomics module will equip the learner with an understanding of how an economy is measured, and the ability to graphically represent the macroeconomic models. This will assist the learner in understanding the reasons for movements in macroeconomic indicator, and the broader economic logic for fiscal and monetary policy decisions.

Indicative Syllabus Content

Introduction to Macroeconomics

  • Introduce Gross Domestic Product (GDP);
  • Break GDP down into its expenditure components: Consumption (C), Investment (I), Government Spending (G), Exports (X), and Imports (M)
  • Real vs. Nominal GDP; GDP and Economic Well-Being;
  • GDP does not measure sustainability
  • Describe how economic growth is driven by increases in:
  1. Labour;
  2. Capital, and
  3. Productivity

Demographics and Economic Growth

  • How a “demographic dividend” drove economic growth in China;
  • How declining population growth will affect economic growth, and how they will affect the environment
  • Capital and Economic Growth
  • The role of Investment (I) in economic growth;
  • Introduction to Keynesian theory, and its contrast with Classical theory
  • Productivity and Economic Growth
  • Determinants of Productivity;
  • The role of innovation in determining productivity;
  • Industrial policy, and whether government support boosts productivity growth
  • Compare the 4th Industrial Revolution with the first three industrial revolutions

Government and Fiscal Policy

  • The role of government in the economy
  • Introduction to the circular flow of income and the leakages due to savings, imports and taxes
  • Keynesian theory and how government spending can have a multiplier effect on the economy in a recession
  • Introduction of Aggregate Demand and Supply schedules to explain changes in inflation
  • Adaptation of Keynesian theory to discuss whether large investments in green technology will boost economic growth

Money and Inflation

  • How central-bank money is printed, and how the central bank can use the money supply to influence the economy;
  • How commercial bank money is printed, and its role in causing the financial crisis in Ireland in 2008
  • The quantity theory of money and how excess money-printing can cause inflation

The Exchange Rate

  • How the prices of goods and services affect the exchange rate through the Purchasing Power Parity (PPP) theory;
  • Fixed versus floating exchange rates and the formation of the Euro zone
  • The controversial role of a depreciating exchange rate in fighting recession

Minimum Intended Learning Outcomes (MIMLOs)

Upon successful completion of this module, the learner should be able to:
MIMLO1
Discuss what causes economic growth and why countries have different growth rates
MIMLO2
Explain how the monetary system works and how monetary conditions affect the economy
MIMLO3
Describe the role of the government in the economy and how government spending affects economic growth
MIMLO4
Discuss how the value of a currency is determined, and how this effects economic growth

Assessment

MIMLOs
Assessment
Percentage
1, 2, 3, 4
Individual project
Total 100%
In-class written test
All Assessments

Reassessment Opportunity

Where the combined marks of the assessment and examination do not reach the pass mark the learner will be required to repeat the element of assessment that they failed. Reassessment materials will be published on Moodle after the Examination Board Meeting and will be aligned to the MIMLOs and learners will be capped at 40% unless there are personal mitigating circumstances.

Aims & Objectives

The aim of this macroeconomic module is to enable the learner to:

  • Understand what causes economic growth.
  • Graphically represent the macroeconomic models.
  • Understand the economic logic for fiscal and monetary policy decisions.
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