114-0401/03 – Macroeconomics A (Makro A)

Gurantor departmentDepartment of EconomicsCredits5
Subject guarantordoc. Ing. Aleš Melecký, Ph.D.Subject version guarantorprof. Ing. Václav Jurečka, CSc.
Study levelundergraduate or graduateRequirementCompulsory
Study languageCzech
Year of introduction2009/2010Year of cancellation2011/2012
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
HON05 Ing. Martin Hon, Ph.D.
JUR20 prof. Ing. Václav Jurečka, CSc.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Part-time Examination 14+0

Subject aims expressed by acquired skills and competences

The pedagogical aim of this course is students´ ability - to understand and to define basic macroeconomic entities - to identify main connections (relations) among them - to interpret topical processes and events in national, European and world economy from the position of the macroeconomic theory - to discuss macroeconomic problems in the environment with differentiated opinions - to compare current macroeconomic processes in different countries - to use the knowledge in macroeconomics to assess processes on microeconomic level - to continue to study the inter - mediate course in macroeconomics (Macroeconomics B)

Teaching methods



The aim of this course is to explain macroeconomic phenomena and processes in the economy. Strong emphasis is laid on the understanding of mutual relationships among macroeconomic variables. Also economic policy practised by governments and central banks has a very important role in the course. The basic course Macroeconomics A is followed by the intermediate course Macroeconomics B in the 4th study year, and in case of doctoral studies by advanced course Macroeconomics C.

Compulsory literature:

Samuelson P. A., Nordhaus W. D.: Economics. New York. McGraw-Hill 2005

Recommended literature:

FRANK, R., B. BERNANKE, K. ANTONOVICS and O. HEFFETZ. Principles of Macroeconomics. 6th ed. McGraw-Hill Higher Education. 2016. 816 Pages. ISBN: 978-0073518992. HEYNE, P., P. J. BOETTKE and D. L. PRYCHITKO. The Economic Way of Thinking. 13th ed. Prentice Hall, 2013. 456 pages. ISBN 978-0-13-299129-2. KRUGMAN, P. and R. WELLS. Macroeconomics. 4rd. ed. Macmillan Learning, 2015. 595 p. ISBN: 978-1-4641-1037-5. STONECASH, R. E., J. LIBICH, J. GANS, S. KING, M. BYFORD and N. G. MANKIW. Principles of Macroeconomics. 6th ed. South Melbourne, Cengage Learning Australia, 2014. ISBN 9780170248518.

Way of continuous check of knowledge in the course of semester


Other requirements


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

I. INTRODUCTION TO ECONOMICS (Only course taught in the winter semester) - Economic assumptions and contexts of production. - Production factors, production possibility frontier. - Money, their formation and economic functions. - Market and market mechanism. - The main directions of contemporary economic thought. II. Macroeconomics 1st MEASURING PRODUCT ECONOMY. - Macroeconomic aggregates. Product gross and net, the real and nominal. - Methods for calculating GDP and GNP. - Alternative indicators of economic activity. - The economic level of the country. 2nd PRODUCT AND TOTAL EXPENSES (spending pattern). - Assumptions macroeconomic equilibrium in terms of the relationship of the product of the economy and total expenditure - 4 sector model. - The function of consumption, savings and investments. - Multiplier effects of changes in spending. - Multipliers - investment, government spending, taxation and foreign trade. - A real product and product potential. Deflation (recessionary) gap. 3rd Aggregate supply and aggregate demand (AS - AD model). - Neoclassical and Keynesian approach to shaping the aggregate supply curve. - Attempt of synthesis - the Keynesian and neoclassical band. - Aggregate demand curve. - Equilibrium product and the equilibrium level. - Product Spaces and ways of closing through economic and political measures. 4th MONEY IN MACROECONOMIC SYSTEM - commercial and central banking. - Identification of money. Monetary aggregates. - The quantity theory of money. - Transaction equation shifts. - Factors affecting demand for money. Transaction demand and speculative. - Offer money. The role of banks in the process of making money. Central Bank. - The level of required reserves. Money multiplier. - Equilibrium in the money market and the equilibrium interest rate. 5th INFLATION. MEASUREMENT OF PRICE LEVELS. - Price indices (CPI, IPD, PPI). - The definition of inflation. Typology of inflation. - Measurement of inflation. - Causes of inflation. - The consequences of inflation. - Possibilities of anti-inflationary policy. 6th UNEMPLOYMENT. - Concept of the unemployed. Typology of unemployment. - Measurement of unemployment. - Causes of Unemployment - neoclassical and Keynesian views. - The natural rate of unemployment and "full employment". - Consequences of unemployment. - Policy options for employment. 7th Monetary Theory and Policy. - The objectives of monetary policy - the intermediate and final. - Influencing the monetary base. Monetary policy is restrictive and expansive. - Discount Policy. - Open market operations. - Changes in the reserve requirement. - "Dilemma" central bank. - Theory of neutrality of money. 8th FISCAL THEORY AND POLICY. - Definition of fiscal policy. - State budget - revenue and expenditure side. - Types of taxes. - State budget deficit - a cyclical and structural. Public debt - internal and external. - Financing of the state budget - crowding out effect - direct, indirect. - Tools fiscal policy. Built-in stabilizers. Discretionary action. - Supply side economics. Laffer curve. 9th OBJECTIVES OF ECONOMIC POLICY. - Consistency and inconsistency of economic policy goals. - Phillips curve and its genesis. - Magic quad - interpretation. - "Hardship index" (Misery Index). 10th ECONOMIC GROWTH AND ECONOMIC CYCLE. - The theory of economic growth. The concept of "growth" and "development". - Measuring economic growth. - Quantitative and qualitative growth factors, barriers to growth. - Production function - the essence. - The concept of technological change and innovation. - The concept of the economic cycle. Comparison of neoclassical and Keynesian interpretations of the cycle. - Causes of the cycle on the demand side and supply side. Phase cycle. - Okun's Law. - Theory of a real cycle. The political cycle. III. INTERNATIONAL ECONOMICS 11th INTERNATIONAL MONETARY SYSTEM. MONETARY AND SHAPING COURSE. - The essence of the exchange rate. Types of exchange rates and exchange rate regimes. - Floating free and controlled. - Graphic presentation of the formation and exchange rate changes help invitation demand graph. - Devaluation (depreciation) and revaluation (appreciation) - their influence on the trade balance. J - curve. - Factors affecting exchange rates. The theory of purchasing power parity. - Intervention in currency markets - intervention purchases and sales - the logic of these operations. - The problem of optimal currency area. Monetary Union and the Euro. 12th EXTERNAL BALANCE OPEN ECONOMY - BALANCE OF PAYMENTS AND ITS STRUCTURE. - Economy in a matrix of international economic relations. - Structure of balance - the balance of payments components. - Analysis of partial balance. - Balance of payments deficit. - Extempore: mercantilism. 13th INTERNATIONAL TRADE - ABSOLUTE AND COMPARATIVE ADVANTAGES. - Closed and open economy. The causes of international trade exchange. - Theory of absolute advantage in trade. - The theory of comparative advantage in trade. - The law of one price. Arbitration - the essence of the process. - Protectionism and free trade. The consequences of the introduction (removal) of import duties - graphic interpretation. - Free Trade Area. Customs Union. World Trade Organization. Exercise: Practice is defined by the content of lectures, exercises used to practice and application of lectures on specific model problem situations. Credit will be awarded to students who obtain at least 20 out of a maximum possible 35 points. It is possible to get 17.5 points for each of the two compensatory tests organized according to schedule training. 1st Only in the course taught in the winter semester: Introductory information seminar. Graphic apparatus used in economics. Graphical analysis of supply, demand and market mechanism. 2nd Current macroeconomic problems of the Czech Republic. Debate. 3rd The calculation of gross domestic product (GNP) and gross national product (GNP). 4th The expenditure multiplier model. The calculation of different types of multipliers. Comparison of multiplier effects. 5th AS-AD model. Analysis of AS-shaped - curve. Shaping the macroeconomic balance. 6th The process of shaping the supply of money: money multiplier. 7th The calculation of consumer price index and implicit price deflator. Inflation - diagnostikace different types. Calculation of inflation. 8th 1st midterm test. 9th Unemployment - unemployment rate calculation. Analysis of the causes and consequences of unemployment. Active and passive employment policy. Phillips curve. 10th Objectives and instruments of monetary policy. Highlighting the current Czech context. 11th Objectives and instruments of fiscal policy. Highlighting the current Czech context. Deficit financing from the state budget - "crowding out" effect, cover the deficit, state debt. Supply side economics. 12th Confrontation keynesovských and neoclassical approaches to macroeconomic problems. 13th 2nd midterm test. 14th The formation of the exchange rate. Intervention in the foreign exchange markets. Analysis of balance of payments.

Conditions for subject completion

Conditions for completion are defined only for particular subject version and form of study

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2011/2012 (B6202) Economic Policy and Administration K Czech Šumperk 1 Compulsory study plan
2011/2012 (B6202) Economic Policy and Administration K Czech Ostrava 1 Compulsory study plan
2011/2012 (B6208) Economics and Management K Czech Ostrava 1 Compulsory study plan
2010/2011 (B6202) Economic Policy and Administration K Czech Ostrava 1 Compulsory study plan
2010/2011 (B6202) Economic Policy and Administration K Czech Šumperk 1 Compulsory study plan
2009/2010 (B6202) Economic Policy and Administration K Czech Ostrava 1 Compulsory study plan
2009/2010 (B6202) Economic Policy and Administration K Czech Šumperk 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner