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Course, academic year 2023/2024
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Intermediate Macroeconomics II - JEM178
Title: Intermediate Macroeconomics II
Czech title: Intermediate Macroeconomics II
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2022
Semester: summer
E-Credits: 6
Examination process: summer s.:
Hours per week, examination: summer s.:2/2, Ex [HT]
Capacity: unknown / unknown (50)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: taught
Language: English
Teaching methods: full-time
Teaching methods: full-time
Is provided by: JEB115
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: prof. Roman Horváth, Ph.D.
Teacher(s): Zoya Arshakyan
prof. Roman Horváth, Ph.D.
Suren Karapetyan
Class: Courses not for incoming students
Incompatibility : JEB115
Is incompatible with: JEB115
Annotation -
Last update: Zoya Arshakyan (16.02.2024)
This is the second part of the Macroeconomics course. At the intermediate level it presents and analyzes questions related to aggregate demand and supply, and short run fluctuations. Its core is the (simplified) IS-LM model. Within the frames of this model this course analyzes the possible drivers of short run fluctuations. It suggests the policy instruments and regimes that can mitigate those fluctuations. The course also provides examples that map theoretical arguments presented in the class to the current processes in the real world.

Upon successful completion of this course, students will be able to better understand the short run functioning of economic systems and to discern the possibilities and limits of economic theories. Students will also be able to employ basic quantitative techniques to model aggregate economic phenomena.

Let me kindly ask not to send your questions to Mr Horvath, he does not teach the course.

Feel free to contact Zoya Arshakyan at in case you have any questions.

You are encouraged to ask questions during the lectures and/or seminars.
Send an email to your professors in case the question cannot be asked during the seminar or lecture!


Aim of the course -
Last update: Mgr. Nikoloz Kudashvili, Ph.D. (12.01.2022)
The students will learn the basic concepts in macroeconomics in order to be able to understand and be able to discuss the topics such as the evolution of inflation, the determinants of economic growth or external imbalances.
Course completion requirements -
Last update: Zoya Arshakyan (18.02.2024)

50% written exam at the end of the semester, 10% Problem Sets, and 40% Midterm Exam, 5% (bonus points) Activity. Grading (A-F) is in line with the Dean's decree 17/2018.

Literature -
Last update: Mgr. Nikoloz Kudashvili, Ph.D. (12.01.2022)

Primary textbook: N. Gregory Mankiw (2015). Macroeconomics (9th Edition). Worth Publishers. 

Student resources are accessible at

Partly, we will also cover the update of this textbook that has an ambition to reflect the current global financial crisis:
Ball, L. and N.G. Mankiw (2011) A New Approach to Intermediate Macroeconomics, Worth Publishers.

Teaching methods -
Last update: Bc. Jan Žemlička (13.02.2023)

Lectures are accompanied by seminars.

Requirements to the exam -
Last update: Zoya Arshakyan (18.02.2024)

50% written exam at the end of the semester, 10% Problem Sets, and 40% Midterm Exam,  5% (bonus points) Activity. Grading (A-F) is in line with the Dean's decree 17/2018.

Syllabus -
Last update: Zoya Arshakyan (17.02.2024)


Week 1 and 2:

Consumption - Keynesian consumption function; Fisher's model; Life cycle hypothesis; Permanent income hypothesis; Random walk;
Investment - Business fixed investment; Residential investment; Inventory investment.
Chapters 16 and 17 from Mankiw (2013), 17 and 18 from Mankiw (2010); 16 and 17 from Mankiw (2003)

Week 3:
Introduction to economic fluctuations - Aggregate demand and aggregate supply model; 
Chapters 10 from Mankiw (2013), Chapters 9 and 10 from Mankiw (2003, 2010)

Week 4 and 5:
Theory of aggregate demand; IS-LM model; Aggregate demand II - Explaining fluctuations with IS-LM model; Changes in fiscal policy; Keynesian multiplier and the crowding out effect; Monetary policy in IS-LM model; IS-LM as a theory of aggregate demand.
Chapters 11 and 12 from Mankiw (2013), Chapter 11 from Mankiw (2003, 2010)


Week 6:
The lecture will be replaced by the midterm exam


Week 7: 

Aggregate demand in an open economy - The Mundell-Fleming model (IS * -LM * version); Efficiency of economic policies under floating and fixed exchange rate regimes; 

Chapters 13 from Mankiw (2013), Chapter 11 from Mankiw (2003, 2010)

Make-up midterm exam 


Week 8:
Aggregate Supply - Sticky wage model; Lucas model; Sticky price model: Phillips curve.
Chapters 14 from Mankiw (2013), Chapters 12 and 13 from Mankiw (2003, 2010)

Week 9:
A dynamic model of aggregate demand and aggregate supply
Chapters 15 from Mankiw (2013), Chapter 14 from Mankiw (2010); [partly covered in Chapter 19 from Mankiw (2003)]

Week 10:
Stabilization policy.
Chapters 18 from Mankiw (2013), Chapter 15 from Mankiw (2010); Chapter 14 from Mankiw (2003); lecture slides

Week 11:
Government debt. Ricardian Equivalence. Effect of government debt and deficits on growth.
Chapters 19 from Mankiw (2013), Chapter 16 from Mankiw (2010); reading slides

Final Exam:


Term 1: TBA

Term 2: TBA

Term 3: TBA (end of June)

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