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Macroeconomics

Course developer

Prior knowledge

Ekon1012, Microeconomics

Course abstract

The course deals with economic problem analyses at macro-level, building an understanding of macroeconomic indicators and causal relationships, monetary and fiscal policy instruments and their effects on the national economy as well as the consequences of macroeconomic disequilibrium.

Learning outcomes and their assessment

Knowledge of the nature and relationships of basic macroeconomic indicators, the current situation of the Latvian economy; nominal and real GDP, their calculation methods; aggregate supply and aggregate demand, types of macroeconomic equilibrium; types and instruments of fiscal and monetary policy; consequences of imbalances in the economy, relationships between inflation and unemployment, the importance of exports and imports. Test 1 and 2. Presentation of homework.
Skills - based on the acquired theoretical knowledge, students can perform a practical analysis of the macroeconomic situation; independently and critically select, systematize and analyze current economic indicators, draw reasoned conclusions and discuss current economic problems. Practical work. Discussions. Presentation of homework.
Competence – students can describe macroeconomic processes, key indicators, their calculation; the interconnections of economic regularities at the level of the national economy, expressing reasoned proposals on a specific economic problem. Discussions. Test. Presentation of homework. Exam.

Course Content(Calendar)

1. Introduction – 2 h (1 h lecture, 1 h practical)
2. Key macroeconomic indicators – 8 h (3 h lectures, 5 h practicals, 1st homework)
3. Macroeconomic equilibrium and stability – 6 h (4 h lectures, 2 h practicals)
4. Aggregate expenditure and income – 4 h (2 h lectures, 2 h practicals)
5. Test 1 – 1 h
6. Macroeconomic instability – 4 h (1 h lecture, 3 h practicals)
7. Inflation – 6 h (4 h lectures, 2 h practicals)
8. Fiscal policy – 6 h (4 h lectures, 2 h practicals)
9. State budget system – 6 h (4 h lectures, 2 h practicals)
10. Test 2 – 1 h
11. Banking – 4 h (2 h lectures, 2 h practicals)
12. Money – 4 h (3 h lectures, 1 h practical)
13. Central bank and monetary policy – 2 h (2 h practicals)
EXCURSION to the Bank of Latvia or any leading company in an industry
14. International economic relations – 4 h (2 h lectures, 2 h practicals)
15. Economic growth – 2 h (1 h lecture, 1 h practical)
16. General macroeconomic equilibrium – 2 h (1 h lecture, 1 h practical)
17. 2nd home work. Presentation: a description of an urgent economic problem, an analysis of the economic situation, conclusions and proposals for improving the situation – 4 h.
Part – time extramural studies:
All the topics intended for full – time studies are covered, yet the number of contact hours is ½ of the specified number of hours.

Requirements for awarding credit points

Two tests must be written: 1. Basic indicators of the national economy: GDP calculation and macroeconomic balance; 2. Imbalance in the national economy: unemployment and inflation. 2 homework assignments prepared, submitted and successfully presented (innovative products and description of a current economic problem). Interactive online tests and assignments completed, participation in group work and discussion. Participation in a study tour. Exam.

Description of the organization and tasks of students’ independent work

For this independent assignment, the student must analyze monetary inequality and compile a student budget alongside the income and expenditure profile of an average Latvian household; furthermore, the student must conduct a critical analysis of a current issue facing the Latvian economy—including a comparison with indicators from other countries—and draw conclusions and offer proposals for future decision-making.
Students should prepare for class discussions regarding the significance of macroeconomic imbalances and fiscal and monetary policies in regulating economic processes.

Criteria for Evaluating Learning Outcomes

The total assessment comprises an examination (40%) and assignments done during practicals within the semester (two tests, two presentations, discussion, group work) (60%). If any of the tests are failed, the value of the obtained grade is reduced by the corresponding percentage.

Compulsory reading

1. Šenfelde M. Makroekonomika. 4.izd. Rīga: RTU, 2014., 244 lpp.
2. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015., 269 lpp.
3. Janvry A.,Sadoulet E. Development Economics: theory and practice. Second edition. New York and London: Routledge, 2021. 548 p. ISBN: 978-0-367-45647-4

Further reading

1. Gods U. Makroekonomika / 2., papild. izd. Rīga: Biznesa augstskola Turība, 2004., 360 lpp.
2. Ducmane K., Ozoliņa A. Naudas laiki Latvijā. A/S Latvijas avīze, 2013., 250 lpp.
3. Latvijas tautsaimniecība – produktivitāte, konkurētspēja, izaugsme: informatīvs ziņojums par Latvijas ekonomikas attīstību, 2024.Ekonomikas ministrija,71lpp; pieejams: chrome-

4. McConnell, Campbell R. Macroeconomics: principles, problems, and policies. New York: McGraw-Hill/Irwin, 2012., 499 p.

Periodicals and other sources

1. Latvijas tautsaimniecība – produktivitāte, konkurētspēja, izaugsme: informatīvs ziņojums par Latvijas ekonomikas attīstību, 2024.Ekonomikas ministrija,71lpp
2. Latvijas ekonomikas attīstības pārskats (ikgadējs izdevums). Ekonomikas ministrija, pieejams: PDF (www.em.gov.lv)
3. Makroekonomika, pieejams: www.makroekonomika.lv
4. Dienas Bizness, pieejams: https://db.lv

5. Nozare.lv, pieejams: https://nozare.lv

Notes

Compulsory course for the ESAF academic bachelor programme Economics.