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ECOM-G312 Macroeconomics 1, 5 cr 
Code ECOM-G312  Validity 01.01.2017 -
Name Macroeconomics 1  Abbreviation Macro 1 
Scope5 cr   
TypeAdvanced studies
  GradingGeneral scale 
    Can be taken more than onceno
Unit Master's Programme in Economics 

Antti Ripatti 

Target group 

Master’s Programme in Economics (General Track), open to all.


First autumn term

Learning outcomes 

After the course, the student should

  • understand how the consumption smoothing motive, interest rates and borrowing constraints shape households’ consumption and savings behaviour.
  • be able to analyse how different taxes and transfers affect households’ labour supply incentives.
  • understand the firms’ factor demand behaviour and how market forces determine wages and interest rates in a simple general equilibrium framework.
  • be able to describe when and how fiscal policy affects aggregate demand.
  • understand the foundations of the Phillips curve and how the monetary policy is conducted in the inflation targeting monetary policy regime.
  • be able to analyse fiscal sustainability using the intertemporal budget constraint of the government.
  • understand the main sources of economic growth and apply growth accounting.
Completion methods 

The course consists of lectures (24 hours) and exercises either in separate sessions or integrated into the lectures. The lectures and exercise sessions are not mandatory.

There is a written final exam and four internet quizzes based on the homework assignments. The homework assignments consist of analytical exercises. These familiarise the student with the theory and calculations typically required in the practical implementation of the models.


The student is assumed to be familiar with the total differential of the functions, the properties of homogeneous functions and the elements of both probability calculation and linear differential and difference equations.

Recommended optional studies 

A course on difference and differential equations


This course provides analytical tools and a modern macroeconomic framework to understand economy-wide phenomena such as aggregate saving, employment, investment, inflation, fiscal policy, monetary policy and growth. It uses mainly two-period models to study the intertemporal choices of households and firms, the interactions of their decisions, and the design of fiscal and monetary policies. The course is also intended to act as a bridge between typical intermediate macroeconomics and more advanced courses that rely heavily on dynamic infinite-horizon models.

Study materials and literature 

In addition to the lecture material, selected parts of Sörensen P.B. & Whitta-Jacobsen H.J.: Introducing Advanced Macroeconomics (1st or 2nd ed.); Additional reading: “Intermediate macroeconomics” by Julio Garín, Robert Lester and Eric Sims ( Part III. Pierpaolo Benigno (2009): “New-Keynesian Economics: An AS-AD View”, NBER Working Paper 14824 ( Other course material will be provided during the course.

Activities and teaching methods in support of learning 

All material related to the course is delivered through the Moodle area of the course, which also contains a discussion forum where students can discuss issues related to the course with each other and the teacher. Each homework assignment involves multiple-choice questions that the students answer through Moodle before the exercise sessions related to that homework assignment.

Assessment practices and criteria 

The grade on a scale from 0 (fail) to 5 is based on the sum of points earned in the final exam and from the homework assignments and potential classroom activities. The points are scaled such that the maximum number of points is 100, of which 60 come from the final exam and 40 from the homework assignments and other activities. To pass the course, the student must earn at least 50 points in total and at least 30 points from the final exam.


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