ECON2004 Topics in Macroeconomics 2
The aims of the module are to develop a simple dynamic framework in order to: (b) give microeconomic foundation to macroeconomic analysis, (a) learn to approach macroeconomic problems from a general equilibrium perspective, (c) enable students to evaluate critically the policy debate with the methods and tools developed by economists.
Aims and Objectives
The aims of the module are (a) to learn to approach macroeconomic problems from a general equilibrium perspective, (b) to provide a framework for macroeconomic analysis based on a microeconomic foundation, (c) to enable students to evaluate critically various macroeconomic policy issues.
Having successfully completed this module you will be able to:
- Understand the equilibrium approach to macroeconomics as a general method for analysing real-world macroeconomic problems
- Assess the implications of this model, and to relate them to the implications of alternative theoretical approaches to macroeconomic issues
- Understand the importance of microeconomic foundations in macroeconomic analysis
The module shows how market-clearing models with strong microeconomic foundations can be used to understand real-world phenomena and to evaluate alternative macroeconomic policies. It presents a single, unified framework for the study of short-term business fluctuation and long term economic growth. The approach of the course follows the general recognition of the need to build the microeconomic foundations of macroeconomic analysis - that is, to explain aggregate economic phenomena as the implications of the choices of rational individuals who seek to improve their welfare within their limited means. The use of microeconomic foundations makes macroeconomics easier to understand because the performance of abstract economic processes like GDP and inflation is linked to something intuitively understood by all -rational individual behaviour.
Learning and Teaching
|Total study time||150|
Resources & Reading list
Lecture notes and problem sets, available on Blackboard.
Assessment of the unit is by coursework ( 2 x 10%) and a two-hour written final examination (80%) at the end of the semester. Coursework consists of home assignments. These assignments provide students with problems that they should solve by applying the theory and techniques discussed in the lectures. The final examination tests the ability of students to use the theoretical concepts and tools learnt during the course in the analysis and critical evaluation of macroeconomic problems and policies.
|Exam (2 hours)||80%|
Repeat type: Internal & External
Prerequisites: ECON1002 and ECON1007 and ECON1008 (or ECON1005)