This module focuses on macroeconomics: the study of the behavior of the economy as a whole. The aim of the module is to provide a rigorous analysis of the main topics in macroeconomics. Our approach is based on microeconomic foundations, as studied in the microeconomics course(s) you took before: we move from individual optimization problems to the macroeconomic problems faced in the aggregate economy. Topics to be covered include: intertemporal consumption and labor supply; business-cycle analysis; capital utilization and unemployment; monetary policy; fiscal policy, open economy.

General characterization





Responsible teacher

Pedro Brinca;João Duarte


Weekly - Available soon

Total - Available soon

Teaching language



Compulsory prerequisites :
- 1101.Principles of Macroeconomics


Robert J. Barro, Macroeconomics: A Modern Approach (1st edition), 2008, Thomson South-Western.

Teaching method

All units include the analysis of real world data side-by-side with the theoretical analysis discussed in the lectures and tutorials, so that students can develop their understanding and critical perspective about macroeconomic facts. Additional readings from the press and other non-academic sources are provided to complement the required textbook.

Evaluation method

There will be one midterm and one final examination.

The final overall grade for the course will be calculated in the following way:
FINAL GRADE = 30%* Midterm Exam + 50%* Final Exam + 20%* Class Participation

For students to pass the course, a minimum grade of 7.5/20 is required in the final exam.

Class participation includes not only students’ contributions to class discussion both in theoretical lectures and TA sessions, but also the moodle quizzes and data homeworks students hand in. Deliveries to these homeworks are due on dates and times indicated by the Teaching Assistants.

Students taking the retake exam will receive a graded based exclusively on the grade of the retake exam.

Only special circumstances (such as grade improvements – Melhorias) can take the Final Exam of the Regular Season with the weight of 100%

Subject matter

Section 1. Introduction to Macroeconomics.

Section 2. Economic Growth.

Section 3. Economic Fluctuations.

Section 4. Money, Inflation, Interest Rates and Business Cycles.

Section 5. The Government Sector.

Section 6. The Open Economy.


Programs where the course is taught: