Economic Policy and Principles

Course Content:

In this module, students are introduced to the techniques of model building and
analytical reasoning used in microeconomics. Some of these techniques are then used as
an input into the analysis of economics at the macroeconomic level. In the early phase of
the module, students are taught about microeconomic models and explore the
application of these models, to current economic issues. Whilst, in the later phase,
students learn about the main macroeconomic aggregates, the basic model of aggregate
demand and supply and the importance of the time horizon in macroeconomics.

Topics covered include:
? The comparative statics of market analysis, shifts in demand and supply,
elasticities, revenues and expenditures. Taxation and subsidies. Price
controls and non-clearing markets.
? Applications to agricultural support systems and minimum wage laws.
? Consumer behaviour
? Costs and outputs
? Market structure
? Factor markets and the theory of derived demand. The determination of
factor incomes in competitive and monopsony markets. Applications to
job subsidies and social security taxes.
? Macroeconomic variables and macroeconomic activity
? Saving, investment and the financial system
? Unemployment
? The monetary system
? Money, growth and inflation
? Open economy macroeconomics
? Aggregate demand and aggregate supply
? The influence of fiscal and monetary policy on aggregate demand
? Unemployment vs inflation

Teaching: Lectures and seminars

Assessment:
STUDY OPTION 1:
? A 'seminar portfolio' of two submitted problem sets
? 2 hour Exam
STUDY OPTION 2/3:
Alternative assessment (tbc)

Study Option 1 = Whole Year
Study Option 2 = Autumn
Study Option 3 = Spring/summer