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Unit information: Economics for Finance and Management in 2016/17

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Unit name Economics for Finance and Management
Unit code ECONM1014
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Professor. Grout
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department School of Economics
Faculty Faculty of Social Sciences and Law

Description

Macroeconomics is the analysis of aggregate or average economic variables. It analyses how the various broad sectors of the economy - the goods market, the financial sector and the labour market - interact to create the movements in output, unemployment, inflation and interest rates that we observe in the economy. In this unit we explain how the economy's total level of desired spending is determined. This involves explaining household consumer spending and firms' capital investment expenditure. It also explains why people hold financial assets such as money; how the quantity of money is determined; and how all these decisions interact with aggregate supply decisions in the short and medium term.

Intended learning outcomes

To give students an understanding of how the macroeconomic phenomena we observe can be seen as the result of the interaction of the decisions made by in the various sectors of the economy; to ensure that students understand the following key macroeconomic concepts:

  • The distinction between real and nominal variables;
  • Aggregate demand and aggregate output;
  • The basics of national income accounting;
  • Consumption, investment and government expenditure;
  • The demand for and supply of money;
  • The Keynesian multiplier;
  • The IS and LM curves and equilibrium aggregate demand;
  • Aggregate supply in the short and medium term.

On successful completion of the micro component, the student will have a good knowledge of current theories and skills in the use of analytic tools in modern microeconomics; the student will be able to apply the analytic tools at an intermediate level; the course will ensure that students understand the following key concepts:

  • Consumer demand
  • Cost, profit maximisation and competitive supply
  • Simple supply and demand equilibrium
  • Competitive equilibrium
  • Welfare Economics
  • Monopoly and Price discrimination
  • Games and Models of Imperfect Competition
  • Imperfect information

Teaching details

Lectures (8 in Macro and 8 in Micro), Exercise Lectures (3) and Classes (4)

Assessment Details

Formative assessment: 2 exercises (1 Macro and 1 Micro) and one Essay

Summative assessment: 3-hour closed book written exam which will assess the intended learning outcomes specified above.

Reading and References

  • Olivier Blanchard's Macroeconomics. (Prentice-Hall, 2011)
  • Hal R. Varian’s Intermediate Microeconomics (Norton, 8th Edition, 2009)

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