Macroeconomics I


Course Objective

The overal goals of the course are to provide a familiarity with the
basic concepts of macro economics, including national income, economic
growth, inflation, unemployment, and fiscal and monetary policy.

After successful completion of this course:
- you will be able to generate academic questions from empirical
observation (Academic Skills);
- find relevant data in sources such as Statline, Eurostat, ECB, World
Bank, etc, and manipulate and analyse these data (Academic Skills);
- you will be able to make calculations on inflation (CPI) or economic
growth (Academic Skills, Bridging Theory and Practice - Application)
- you will be able to explain the roal of economic institutions and
organisations such as Netherlands Bureau for Economic Policy Analysis
(CPB) or the European Central Bank (ECB) (Bridging Theory and Practice
- Application, Broadening Your Horizon)

Course Content

This course concerns the functioning of the economy as a whole, at times
for a single country and at times for countries in an international
context. The course starts with a description of basic macroeconomic
concepts both from a theoretical and empirical point of view. An
introduction to money and banking expands the field of study to monetary
economics. Next, the course addresses the real side of the macro economy
and shows the circular flow of production factors and final goods
between households and firms. A basic model of income determination and
a basic model of real economic growth follow. Next, the real and
monetary sides of the macro economy are joined to provide a basic model
of business cycles to jointly study fluctuations in (un-)employment and
inflation. Finally, the course initiates an analysis of fiscal and
monetary policy, in a European and international context. The course
maintains links with current events and policy questions of pressing

Following a quarter century of steady economic growth, falling
unemployment rates and low inflation, the advanced economies received in
2008 the largest economic shock since the great depression of the 1930s.
What were the origins of the crisis? Was it mostly a failure of
regulation or are such crisis inevitable feature of market-based macro
economies? Are we already witnessing the origins of the next crisis?

In this course we build upon material from the course Microeconomics I,
and we study the developments of aggregate economic growth, of business
cycles in employment, consumption, investment and trade, and we consider
the joint movements of inflation, exchange rates, monetary aggregates
and financial indicators. We also look at national income accounts as a
means of reporting on macroeconomic developments using concepts that
also appear in the course Accounting I. Further, macroeconomic
indicators such as interest rates, exchanges rates and economic growth
are important factors for business decisions that are discussed in other
first-year courses such as Marketing and Finance.

Teaching Methods


Method of Assessment

Final Exam (individually assessment)
Weekly Problem Sets (individually assessment)

Entry Requirements



- Mankiw, N.G. and M.P. Taylor (2014), Macroeconomics, European Edition
(second edition), W.H. Freeman & Co Ltd.(ISBN-13: 978-1464141775).
- supplemented with online material

Target Audience

The course is intended for students of EBE, but could be of interest to
Bachelor students of any faculty.

Recommended background knowledge

Economic Challenges, Quantitative Research Methods I and Microeconomics

General Information

Course Code E_EBE1_MACEC
Credits 6 EC
Period P4
Course Level 100
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator prof. dr. E.J. Bartelsman
Examiner prof. dr. E.J. Bartelsman
Teaching Staff dr. D.A.R. Bonam

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Study Group, Lecture, Instruction course
Target audiences

This course is also available as: