| Unit name | Intermediate Economics 1 (E) |
|---|---|
| Unit code | EFIM20023 |
| Credit points | 20 |
| Level of study | I/5 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Dr. De Magalhaes |
| Open unit status | Not open |
| Pre-requisites |
Economic Principles 1 and Economic Principles 2 OR Economic Principles 1(E) and Economic Principles 2(E) |
| Co-requisites |
None |
| School/department | School of Economics, Finance and Management |
| Faculty | Faculty of Social Sciences and Law |
The course develops economic theory at an intermediate level.
At the microeconomic level it considers the impact of asymmetric information, uncertainty and strategic interaction.
At the macroeconomic level it studies economic growth, modern consumption theory and a dynamic 3-equation macro framework that will allow students to achieve a deeper understanding of the determinants of key macro variables.
Students should be able to:
1. Demonstrate a good understanding of a variety of games, the importance of information and beliefs, and solution concepts.
2. Understand the implications of uncertainty and asymmetric information in a variety of economic settings;
3. Formalize an economic problem using the models presented and use the models to undertake analyses.
4. Understand the basic theories of economic growth and development, including the key concepts of capital accumulation, technological progress and development traps.
5. Demonstrate a solid understanding of modern dynamic consumption theories, including the ideas of prudence and precautionary behaviour and be able to apply this knowledge to the real world.
6. Analyse the behaviour of the output gap, the interest rate and the rate of inflation using a dynamic, rational expectations 3-equation model of an economy that is disturbed by various shocks.
36 hours of lectures and exercise lectures
9 hours of classes
Summative assessment:
Three-hour closed book exam. This will assess all the ILOs.
Formative assessment:
6 short assignment, consisting mainly of problems.
J. Perloff, Microeconomics. Pearson.
R. Gibbons, A Primer in Game Theory, Prentice Hall.
F. Cowell, Microeconomics, Oxford University Press.
Lecture Notes for the macro component of the Unit.
