Macroeconomics and Economic Application

Course content

1. National accounts and economic indicators
2. Long-term economic growth and income distribution between labor and capital.
3. The Solow model of capital accumulation and economic growth in the long term.
4. The importance of political and economic institutions and policy for national income and wealth.
5. Income inequality, economic growth, and long-run sustainability.
6. Natural resources, the environment and economic growth
7. Model based analysis of short-term effects of monetary and fiscal policy on aggregate employment and output.
8. Monetary and fiscal policy under fixed and flexible exchange rates.
9. Short and long run macro supply functions and Phillips curves.
10. Monetary policy under flexible inflation targeting.
11. Fiscal policy: Goals and policy instruments. Spending of petroleum revenues and the real exchange rate.
12. Macroeconomic development of the Norwegian economy. Asset bubbles, financial and government debt crises.
13. Long run effects of fiscal policy.