MACROECONOMIC THEORY

ECOZ559

Course Code: ECOZ559
Semester: Second Term (Spring)
Theory+Practice: 3 + 0
ECTS: 10

Course Type

Compulsory Course

Course Level

Master's Degree Without Thesis

Year of Study

Semester

Second Term (Spring)

ECTS

Name of Lecturer(s)

Instructor Özlem Aytaç

Learning Outcomes

At the end of this course, the students;

will have learned to make economic analysis by using the basic macroeconomic concepts. They will understand national income accounting, growth theory and economic growth. They will learn macroeconomic models and the links among them. They will understand money, financial and goods markets, and the links among them. They will understand inflation and unemployment issues and stabilization policies.
are provided with a comprehensive and advanced understanding of the mathematical (such as difference, differential equations, optimal control, etc. ) and graphical tools (such as a phase diagram) to grasp the main results of the models.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

Course Description

This course is an intermediate macroeconomics series. Within the framework of basic business cycle models, demand-side equilibrium and IS / LM models and the effectiveness of financial and monetary policy will be examined. It aims to teach choice problems such as consumption, saving, labor supply, investment, labor demand in the economy by using optimization techniques.

Course Contents

WEEK	TOPICS
1^st Week	Basic Concepts and National Income Accounts
2^nd Week	Growth and Growth Policy
3^rd Week	Aggregate Demand Aggregate Supply
4^th Week	The Phillips Curve
5^th Week	Costs of Unemployment and Inflation
6^th Week	Money, Interest and Income
7^th Week	Monetary and Fiscal Policy
8^th Week	Balance of Payments and International Linkages
9^th Week	Consumption and Savings
10^th Week	Investment
11^th Week	The Demand for Money and the Central Bank
12^th Week	The National Debt
13^th Week	Inflation, Hyperinflation and Stopping Inflation
14^th Week	Major Theories in Macroeconomics
15^th Week

Recommended or Required Reading

Ben J. Heijdra and Frederich Van Ders Ploeg, Foundations of Modern Macroeconomics. Oxford Universtiy Pres, 2002.
D. Romer, Advanced Macroeconomics. McGraw-Hill
R. Dornbush, S. Fischer and R. Startz, Macroeconomics, ibt. ed. McGraw-Hill, 2001.
Oliver Jean Blanchard and S. Fischer, Lectures on Macroeconomics, The MIT Pres, 1989
A.C.Chiang, Elements of Dynamic Optimization; McGraw-Hill, 1992.

Planned Learning Activities and Teaching Methods

Lecture
Discussion

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	40
Quiz	1	10
Total(%)		50
Contribution of In-term Studies to Overall Grade(%)		50
Contribution of Final Examination to Overall Grade(%)		50
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	2	2
Preparation for Quiz	1	55	55
Individual or group work	14	5	70
Preparation for Final exam	1	70	70
Course hours	14	3	42
Preparation for Midterm exam	1	60	60
Laboratory (including preparation)
Final exam	1	2	2
Homework
Total Work Load			301
Total Work Load / 30 (h)			10.03
ECTS Credit of the Course			10

Language of Instruction

English

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2
K1		X
K2	X
K3		X
K4	X
K5		X
K6		X
K7		X
K8		X
K9	X
K10	X