• ECON2002
  • Macroeconomic Theory & Policy

  • Credits (ECTS): 10
  • Accounting and Finance

Modules are delivered
as part of a programme.
To apply for the
programme,
see the DIT website

Module Description

This module is an intermediate module in Macroeconomics. It is a core module for students in both the Economics and Finance and Accounting and Finance programmes and is also available as an option module in other business degree programmes. The module examines the theory and policy issues associated with Macroeconomics. The theory component on each topic uses mathematical analysis and is analytical in nature. The policy component is more descriptive and applies aspects of the theory to real economy situations.

Indicative Syllabus

Review of Basic Macroeconomic Theory:
1. Circular flow of income diagram.
2. Aggregate demand / Aggregate supply analysis.
3. Income / Expenditure analysis.
4. The Cobb-Douglas production function.
Growth Theory:
1.The Solow growth model – algebra and geometry of the model that includes investment/saving, population change and technology.
2. Importance of technology policy for an economy.
Inflation and Unemployment:
1. Keynesian versus Classical approaches to both of these issues.
2. Quantity theory of money equation.
3. Linking inflation and interest rates and explaining the role of expectations.
4. Analysis of cyclical and structural issues associated with unemployment.
Modelling the economy in the long run:
1. The Classical model of the Closed economy.
2. The market for loanable funds.
3. The markets for loanable funds and foreign exchange in the small open economy.

Total Contact Teaching Hours:72

Pre-requisite Modules

Title Code
Economics 1 ECON1007

Please note that the catalogue is provided as a guide to modules in DIT. Not all modules listed will necessarily be offered every year and new modules may also be added. Information subject to change. For detail on specific programmes/modules please contact the relevant School directly.