Introduction to Macroeconomics Practice Flashcards

Introduction to Macroeconomics

  • Definition: Macroeconomics is the study of aggregate economies, examining both the long run (economic growth and development) and the short run (business cycles like expansions and recessions).

  • Core Variables:

    • Gross Domestic Product (GDP): Real GDP measures the total price-adjusted income of an economy.

    • Inflation Rate: High inflation or deflation causes economic instability and shifts wealth distribution.

    • Unemployment Rate: Representing a waste of resources, unemployment leads to economic, social, and psychological issues.

Methodology and Theoretical Framework

  • Mainstream Economics: The course focuses on (neo)classical macroeconomics using mathematical models as simplifications of reality.

  • Model Types:

    • Classical Models: Focused on the long run; assume flexible prices.

    • Neoclassical Business Cycle Models: Focused on the short run; assume price rigidities.

  • Alternative Perspectives: Students are encouraged to consider heterodox schools of thought (Austrian School, Post-Keynesian Economics, Institutional Economics) and investigative journalism (e.g., Martin Wolf, Naomi Klein, Joris Luyendijk) for a broader understanding.

Course Organization and Resources

  • Personnel: The course is coordinated by Koen Vermeylen, with tutorials led by Sevim Dinlemez, Kees Haasnoot, Naomi Leefmans, Flavia Paoloni, and Koen Vermeylen.

  • Primary Material: The main textbook is Mankiw, Macroeconomics, 12th12\text{th} edition.

  • Learning Components: Separate Canvas modules for each week include pre-recorded and live lectures, homework problem sets, knowledge clips, and tutorials.

  • Scope: The midterm and exam cover all material from lectures, tutorials, and Canvas, including topics not present in the textbook.

Evaluation and Assessment

  • Examination Format: Midterm and final exams consist of multiple-choice and numerical questions. They are closed-book, though a non-graphing FEB-calculator is permitted.

  • Grading Schema:

    • If the exam grade is < 5.0: The final grade equals the exam grade.

    • If the exam grade is ≥5.0≥ 5.0: Final Grade =(0.20×Midterm)+(0.80×Exam)= (0.20 \times \text{Midterm}) + (0.80 \times \text{Exam}).

    • Pass Requirement: A final grade of at least 5.55.5 (before rounding) is required to pass.

    • Resit: The resit grade counts as 100\text{%} of the final grade; the midterm score does not apply to resit results.

Student Expectations

  • Active Participation: Students must attend assigned tutorial groups, take active notes, and complete all readings and homework exercises.

  • Conceptual Mastery: Success requires understanding the underlying logic (“why?”) rather than simply memorizing how to solve specific homework problems.