Macroeconomics II
General data
Course ID:  2400PP2MA2a  Erasmus code / ISCED:  14.3 / (0311) Economics 
Course title:  Macroeconomics II  Name in Polish:  Macroeconomics II 
Department:  Faculty of Economic Sciences  
Course groups: 
(in Polish) Przedmioty obowiązkowe dla II r. licencjackich Międzykierunkowych Studiów EkonomicznoMatematycznych (in Polish) Przedmioty obowiązkowe dla II r. studiów licencjackich  Ekonomia Międzynarodowa (in Polish) Przedmioty obowiązkowe dla II r.licencjackich: Ekonomia, specjalność: MSEMen Englishlanguage course offering of the Faculty of Economics Mandatory courses for IIyear, 1st cycle students of Economics  collective courses Specialization courses for IIyear, 1st cycle students of Economics of Enterprise Specialization courses for IIyear, 1st cycle students of Finance and Accounting Specialization courses for IIyear, 1st cycle students of Information Technology and Econometrics 

ECTS credit allocation (and other scores): 
6.00 view allocation of credits 

Language:  English  
Type of course:  obligatory courses 

Short description: 
The course will introduce students to the models and techniques used in modern macroeconomic theory at the intermediate level. The objective of the course, besides specialized knowledge acquisition, is to develop the ability of critical thinking, using the quantitative tools in macroeconomic analysis, offering alternative solutions to complex problems, defend positions in discussions in an analytically rigorous but lucid way. The course begins with the analysis of the short run inflation and output dynamics, using the DAD/DAS model. Then, the lectures will discuss the longrun growth determinants in the neoclassical growth theories. The presentation of the microfoundations of consumers' and investors' behavior and monetary and fiscal policy conduct follows. Finally, the role of fiscal and monetary policies are discussed. 

Full description: 
Lectures 1 3. Introduction. The dynamic DAD/DAS model. The aim of the lectures is to derive the DADDAS model and use it to analyse the impact of demand and supply shocks. The tutorials are devoted to solving quantitative and qualitative problems and tasks, designed to depend the understanding of the DAD/DAS model Lectures 47. Growth Dynamics: The Solow Model. The aim of the lectures is to analyze the determinants of the rate of economic growth under the neoclassical assumption of diminishing marginal product of capital and exogenous technological progress. The aim of tutorials is to quantitatively decompose growth rates, analyze the properties of the steady state and to explain differences in the level of income using Solow growth Lectures 810 Microfoundations. Consumption and Saving; The Interest Rate and Consumption – The Intertemporal Choice of Consumer; The LifeCycle and PermanentIncome Hypothesis. Investment The User Cost of Capital; The Desired Capital Stock; Taxes and the Desired Capital Stock; From the Desired Capital Stock to Investment The aim of the lectures is to analyze consumptions and investment determinants. The aim of tutorials is to analyze the determinants of consumption and investment using empirical and analytical examples. Lectures 1113 Fiscal and monetary policies. Government Spending and Its Financing; The Government Budget Constraint; The Evolution of the DebttoGDP Ratio; Cyclically Adjusted Deficit; Ricardian Equivalence. The Conduct of Monetary Policy, Money Supply Determination, Money Demand and Equilibrium in the Money Market. The aim of the lectures is to identify the determinants of government debt dynamics and the constraints that excessive debt imposes on fiscal policymaking and to discuss the modern conduct of monetary policy. The aim of tutorials is to calculate the value of primary surplus required to maintain a stable debt to GDP ratio for various values of real interest rate and GDP growth rates and to present advantages and weak points of various monetary policy strategies. 

Bibliography: 
Mandatory Mankiw G., Macroeconomics, Worth Publishers, 2003 or newer Supplementary: Abel, A. B. and Bernanke B. S. (2005), Macroeconomics, Pearson Education. 

Learning outcomes: 
Upon the lecture completion, a student: KNOWLEDGE:  is able to identify the determinants of output, unemployment, interest rate, and prices in the short, medium and long run.  is able to analyze the impact of demand and supply shocks on the economy. SKILLS:  is able to select an appropriate model to analyze macroeconomic phenomena in different time horizons, different phases of the business cycle and different degrees of nominal rigidities.  is able to design an optimal monetary and fiscal policy mix aimed at achieving low inflation and output stabilization and predict the consequences of monetary and fiscal policy.  is able to interpret the empirical relations between macroeconomic variables using theoretical models and on this basis to explain the strength and the responsiveness to external influences of the detected macroeconomic relations.  is able to describe macroeconomic processes in a formalized way at the intermediate level.  is able to recognize basic limitations of using theoretical models to explain realworld economic problems. SOCIAL SKILLS: is able to meet timeconstrained targets through effective planning and organization. KW01, KW002, KW03, KW04, KW05, KU01, KU02, KU03, KU04, KK01, KK02, KK03 

Assessment methods and assessment criteria: 
1. Points from the tutorial 2. Points from the written final exam 3. Points from the introductory online tests. The final grade from Macroeconomics II is given based on the: • Final exam: 54 points • Tutorial: 40 points • Online tests: 6 points Approximate grading: 0 – 49 points: fail; 50  59 points: satisfactory; 60  69 points: satisfactory+; 70  79 points: good; 80  89 points: good+; 90  97 points: very good; 98  100 points: very good! FINAL EXAM The final exam be held at the Faculty of Economic Sciences. The final exam will consist of openended questions and singlechoice questions. The maximum amount of points is 54. The prerequisite to take the exam is to pass the tutorial. Online test There will be 6 (beforethelecture) entry assignments, held online, on Moodle Platform. Each assignment will consist of 5, singlechoice questions. These assignments will cover the material discussed during the previously held lectures. Each assignment will be accessible for 24 hours (opening on Monday, closing on Tuesday), but once the assignment is open, it has to be completed within 10 minutes. After 10 minutes the assignment will close and it will not be possible to reopen it. Points from each assignment: • 02 correct answers – 0 points • 3 correct answers – 0,5 points • 45 correct answers – 1 points The maximum amount of points from all assignments is 6. These entry assignments cannot be retaken. TUTORIAL The maximum tutorial mark is 40 points and is based on 3 components: • 1st test, worth 10 points. The test will be held online • 2nd test, worth 18 points. The second test will be, online or offline, at the Faculty of Economic Sciences, depending on the Dean’s regulations. • Presentation on a chosen subject, worth 12 points. Presentation should include a brief summary of the relevant theory and graphical/statistical data analysis. Presentations should be prepared in groups of 23 students (3person groups can be accepted by the teacher if a heavy workload with data analysis is necessary to achieve the goals of your presentation). The Students choose the subject by themselves. Presentations last up to 10 minutes and will be held online. Please note that you can make the presentation only during class time and cannot resubmit the presentation to achieve a higher score. Passing the tutorial requires collecting at least 21 points. 
Classes in period "Winter semester 2020/21" (past)
Time span:  20201001  20210131 
see course schedule 
Type of class: 
Class, 30 hours more information Lecture, 30 hours more information 

Coordinators:  Joanna SiwińskaGorzelak  
Group instructors:  Michał Brzozowski, Joanna SiwińskaGorzelak  
Students list:  (inaccessible to you)  
Examination: 
Course 
Examination
Class  Grading Lecture  Examination 

Mode:  (in Polish) zdalnie 
Copyright by University of Warsaw.