ECO2004P - Macroeconomics II

18 credits at NQF level 6

Entry Requirements:

ECO1010, ECO1011F/S and MAM1010 (or an equivalent). A student will be permitted to take ECO2004 without having passed ECO2003, although it is desirable to pass MERCE 149 ECO2003 prior to taking ECO2004.If a student gets at least 40% for MAM1000W they will be allowed to register for ECO2004. To register for this course, permission is required from the School of Economics.

Course Outline:

The course builds upon ECO1011S and aims to provide students with the analytical tools and formal models to explain the behaviour of output, inflation, employment, interest rates and other economic aggregates. These tools are used to understand current economic issues, forecast the behaviour of the economy, and assess the impact of policy choices. Specifically, the course starts with analysing the short run behaviour of the economy through the IS-LM model before it moves on to consider the medium run through the AS-AD model. Finally, it looks at the factors that influence long run growth using the Solow growth model. Analysis of the open economy, such as trade and exchange rate regimes, is also undertaken.