Macroeconomic Analysis

Not applicable.

 The development of content will be based on a theoretical and theoretical-practical approach, either through exposure, through the analysis of cases and problem solving.

This subject aims at developing the student’s skills regarding mainly the understanding of the main macroeconomic aggregates and the way they interact. Other aims:
• Debate the current macro-economic issues;

• Understand the role of economic policies;

• Compute and interpret macro-economic aggregates;

• Understand macro-economic models;

• Interpret multipliers;

• Understand the dynamics of inflation and unemployment;

• Contextualise the Public Sector intervention in the stimulus to competitiveness and economic growth;

• Distinguish economic growth from business cycles.

I – Introduction and general concepts

II – Measuring economic activity

Product as a measure of economic performance

Output gap

Employment and unemployment

Measuring price levels and inflation Inflation rate

Economic impacts of Inflation/deflation

Nominal and real values

National Accounts

Conceptual and theoretical issues

Agents, operations, flows and stocks

Economic circuit

National Accounting Identities

III – Public Sector and Public Finances

Public balance and public deficit

Public debt

IV – Consumption,

Savings and Investment

Private consumption and family savings Investment

V – Multiplier effects

The Simple Keynesian model

Multipliers and fiscal policy

VI – IS/LM Model

Product market and the IS Money market and the LM

Simultaneous equilibrium

Fiscal and monetary policies

VII – Aggregate supply and aggregate demand

Aggregate demand

Aggregate supply

Macroeconomic equilibrium

Aggregate supply and aggregate demand shifts

VIII – Economic growth and business cycles

Final examination by means of a written test (minimum score of ten points), with no oral examination foreseen. The examination is not open to consultation, so the use of any equipment with file storage capacity or memory records (namely, graphic machines or similar) will not be allowed.

Alternatively, it is offered the possibility to perform the assessment through two components:

(i) classification of five practical exercises (each with a similar weight), which can be performed in groups (maximum three elements), with a weight in the final assessment of 50%. To be able to attend this type of evaluation, students must be present in 75% of the scheduled classes.

ii) Final examination (normal, appeal or special season) by means of a written test (minimum score of eight points) with a weight of 50%. The examination is not open to consultation, so the use of any equipment with file storage capacity or memory records (namely, graphic machines or similar) will not be allowed.

To pass the course it is necessary to obtain a minimum mark of ten (10) in the weighted average of i) and ii).

NAO