Advanced Macro Economics
- Social Sciences
- 400 level
- 2 credit units
- 154 pages
- 18 units
This course provides an in-depth exploration of advanced macroeconomic theories and models. It covers macroeconomic modeling in closed and open economies, consumption, saving, and income determination. Students will analyze investment functions, the IS-LM framework, and the dynamics of inflation and unemployment. The course also delves into economic growth analysis and various growth theories, equipping students with analytical skills for careers in both public and private sectors.
About this course
- Difficulty
- Intermediate
- Study hours
- 30 hours
- Maths
- Intermediate
- Content
- Theoretical, case study, problem solving
- Practical work
- No
- Assignments
- Tutor marked assessments
- Final examination
What you'll read
The real module and unit structure of ECO442, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
ECO442 · UNIT 1 NATIONAL INCOME ACCOUNTING: TWO- SECTOR ECONOMY
Macroeconomicaccountingandmacroeconomictheorydeallargelywiththesamevariables, a number of which, such as income, output, and employment, will be encountered in this module. However, macroeconomic accounting deals with the accounting relationship, as opposed to the theoretical or functional relationship, that may be established among these variables. An accounting relationship is an identity, a relationship that is true by definition.
What you should be able to do
- Explain macroeconomic models in closed and open economies.
- Analyze the determinants of consumption, saving, and investment.
- Apply the IS-LM framework to assess the effects of fiscal and monetary policies.
- Evaluate the causes, effects, and measures to curb inflation and unemployment.
- Discuss economic growth theories and their implications for developing economies.
What it prepares you for
- Economist
- Financial Analyst
- Policy Advisor
- Market Research Analyst
- Banking
- Finance
- Government
- Consulting
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 3: Investment Function
Unit 2: Theories of investment
Theories of investment require understanding of complex financial concepts and their impact on macroeconomic variables.
- Module 4: IS-LM Framework
Unit 3: General equilibrium analysis of product and money markets
General equilibrium analysis requires integrating knowledge of both product and money markets, which can be challenging.
A suggested way through it
13 weeks, about 26 hours in total. Yours will differ.
- Week 1Module 1: Macroeconomic Measurements/macroeconomic modelling in closed and open Economy
Unit 1: National income accounting: Two-sector economy · 2 hours
Define national income and its components.. Explain the circular flow of income in a two-sector economy.. Differentiate between GDP, GNP, NNP, and NI..
- Week 2Module 1: Macroeconomic Measurements/macroeconomic modelling in closed and open Economy
Unit 2: National income accounting: Three-sector economy · 2 hours
Analyze the circular flow of income in a three-sector economy.. Discuss the role of government receipts and expenditures.. Examine the fundamental identity and budget in a three-sector economy..
- Week 3Module 1: Macroeconomic Measurements/macroeconomic modelling in closed and open Economy
Unit 3: National income accounting: Four-sector economy · 2 hours
Describe the circular flow of income in a four-sector economy.. Explain the fundamental identity in a four-sector model.. Discuss the importance of the circular flow of income..
- Week 4Module 2: Consumption, Saving and Income Determination
Unit 1: Concepts of Consumption and Savings · 2 hours
Define consumption and savings.. Explain personal disposable income as a determinant of consumption and savings.. Differentiate between MPC, APC, MPS, and APS..
- Week 5Module 2: Consumption, Saving and Income Determination
Unit 2: The basic consumption and saving functions · 2 hours
Explain the basic consumption function.. Describe the consumption function algebraically and graphically.. Explain the consumption hypothesis, including short-run and long-run functions..
- Week 6Module 2: Consumption, Saving and Income Determination
Unit 3: Theories/hypotheses of consumption · 2 hours
Explain the Absolute Income Hypothesis (AIH).. Discuss the Relative Income Hypothesis (RIH).. Analyze the Permanent Income Hypothesis (PIH).. Evaluate the Life Cycle Income Hypothesis (LCIH)..
- Week 7Module 3: Investment Function
Unit 1: Investment and Capital · 2 hours
Define investment and capital.. Distinguish between capital and investment.. Explain the relationship between capital and investment.. Describe the types of investment..
- Week 8Module 3: Investment Function
Unit 2: Theories of investment · 2 hours
Explain the accelerator theory of investment.. Describe the marginal efficiency hypothesis.. Discuss the relationships between MEC and MEI..
- Week 9Module 3: Investment Function
Unit 3: Investment demand: The rate of interest and the role of finance · 2 hours
Explain the determinants of the elasticity of the MEC schedule.. Describe the role of finance beyond the rate of interest.. Discuss factors other than the interest rate affecting inducement to invest..
- Week 10Module 4: IS-LM Framework
Unit 1: The product market equilibrium and the IS curve · 2 hours
Explain equilibrium in the goods or product market.. Discuss the equality of savings and investment.. Describe algebraically and graphically the IS curve.. Explain the slope of the IS curve and shifts in the IS curve..
- Week 11Module 4: IS-LM Framework
Unit 2: The money market equilibrium and the LM curve · 2 hours
Explain equilibrium in the money market.. Analyze the equality of demand for and supply of money.. Illustrate both graphically and algebraically the LM function.. Explain the slope and shift in the LM curve..
- Week 12Module 4: IS-LM Framework
Unit 3: General equilibrium analysis of product and money markets · 2 hours
Define the general equilibrium or the IS-LM framework.. Explain changes in general equilibrium due to changes in fiscal policy and monetary policy.. Discuss the simultaneous change in both policies and the effects on income and interest rate.. Describe the IS–LM elasticity and monetary & fiscal policies..
- Week 13Module 5: Inflation and Unemployment
Unit 1: Inflation · 2 hours
Explain the meaning of inflation.. Enumerate and analyze the different types of inflation.. Analyze the measurements, causes, and effects of inflation with reference to the Nigerian economy.. Mention policy measures to fight inflation..
Preparing for the exam
- Review national income accounting methods (Units 1-3) and practice calculating GDP, GNP, and NNP.
- Create concept maps linking consumption theories (Module 2) to real-world economic behavior.
- Master the IS-LM model (Module 4) by solving numerical problems and analyzing policy scenarios.
- Compare and contrast Keynesian and Monetarist views on inflation (Unit 1, Module 5).
- Understand the trade-offs between inflation and unemployment using the Phillips curve (Unit 3, Module 5).
- Focus on the assumptions and limitations of each economic growth theory (Module 6).
- Practice applying economic models to analyze current economic issues in Nigeria.
Questions students ask about this course
What is ECO442 about?
This course provides an in-depth exploration of advanced macroeconomic theories and models. It covers macroeconomic modeling in closed and open economies, consumption, saving, and income determination. Students will analyze investment functions, the IS-LM framework, and the dynamics of inflation and unemployment. The course also delves into economic growth analysis and various growth theories, equipping students with analytical skills for careers in both public and private sectors.
How many units does ECO442 have?
ECO442, Advanced Macro Economics, has 18 units across 6 modules, over 154 pages of course material. You can read it one unit at a time.
How many credit units is ECO442?
ECO442 carries 2 credit units, at 400 level in Social Sciences.
Is ECO442 hard?
ECO442 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, case study and problem solving work.
How long does ECO442 take to study?
About 30 hours of study, spread across its 18 units.
How is ECO442 assessed?
ECO442 is assessed by assignments, tutor marked assessments and final examination.
What can I do with ECO442?
Economist, Financial Analyst, Policy Advisor and Market Research Analyst.