In this course students will be introduced to the modern study and analysis of macroeconomics by considering how the microeconomic units, namely consumers and firms, make their decisions and how the their choices yield economy-wide outcomes. Following a review of consumer theory, we will study the macroeconomic theory of consumption, including the impact of various government policies on consumption behaviour. In a similar way we will introduce firms in the theoretical model. The final objective is to build a small theoretical model for the entire economy using the representative agent paradigm. This will allow students to analyse demand, supply and equilibrium in three macro markets: the aggregate goods and services market, the aggregate labour market, and the aggregate financial market. Therefore, at the end of this course, students should be able to understand how macroeconomic outcomes arise and the effects of macroeconomic policies on employment, output and prices. The use of some problem sets will also enable them to apply the concepts they have learned.
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Partita IVA01541040232
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