Macroeconomic Theory 1 provides a rigorous introduction to fundamental dynamic models that, while simplified, capture the most essential relationships in macroeconomics. The course covers the Solow Growth Model, Ramsey Model, and Real Business Cycle (RBC) models, which, despite their limitations in realism, offer crucial insights into long-term economic growth and short-term fluctuations. These models are technically challenging to solve, and students will focus on developing strong problem-solving skills by mastering their complexities.

By working through these foundational models, students will acquire the analytical tools necessary to understand and interpret the core mechanisms driving economic outcomes. Although these models are simplified, they lay the groundwork for exploring more complex and realistic macroeconomic frameworks in future studies. Additionally, students will gain the ability to evaluate the policy implications of these models, understanding how they inform economic decision-making at a fundamental level.

The course emphasizes analytical rigor, problem-solving, and the development of core theoretical skills. While some basic computational techniques will be introduced in lab sessions, the focus remains on theoretical understanding and application, preparing students for advanced research in macroeconomics.

Synchronous:

2 hours per week in teaching weeks 1-2; 4 hours per week in teaching weeks 3-4; 6 hours per week in teaching weeks 5-6; and 4 hours per week in teaching weeks 7-10.

Asynchronous:

Set of exercises (approximately 20 hours) that will include both theoretical, derivational, and applied type of questions with the corresponding solution guides.

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1. To deepen students' understanding of core macroeconomic models for analysing economic growth, fluctuations, and policy implications.

2. To enhance students' abilities to critically analyse and solve complex macroeconomic problems using dynamic equilibrium models.

3. To develop students' capacity to evaluate and synthesize economic policies within rigorous macroeconomic frameworks.

4. To introduce basic computational methods for solving macroeconomic models and foster the application of these methods in policy analysis.

By the end of this course students will be able to:

1. Identify, conceptualize, and apply appropriate macroeconomic models to analyse a range of economic issues, focusing on economic growth and business cycles.

2. Critically evaluate macroeconomic policies by interpreting the outcomes of theoretical models and assessing their implications for economic performance.

3. Solve advanced macroeconomic problems, including deriving solutions, log-linearizing models, and interpreting results using both analytical and basic computational techniques.

4. Apply theoretical knowledge in collaborative lab-based settings, demonstrating the ability to engage with and solve standard macroeconomic models through independent and group-based learning.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.