Course content

The focus in this course is on how economic aggregates evolve over time and on how this evolution is shaped by economic agents who are taking account of how their present decisions will affect their own future. Among the topics are:

  • saving and investment decisions
  • labor supply decisions
  • capital accumulation and the determination of real interest rates
  • business cycle theories

The course covers a range of models that are among the most widely used tools in macroeconomic thinking. It is meant as an introduction to macro theory at the masters’ level and provides a useful background for the other macro courses.

Learning outcome

Knowledge:

You should know:

  • the Solow model
  • theories of saving and investment
  • the basic neoclassical growth model
  • theories of business cycles

Skills:

You should be able to:

  • solve dynamic optimization problems
  • use intertemporal equilibrium models to discuss qualitatively the effects over time of exogenous shocks to the economy

Competence:

You should:

  • be able to read and understa