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Module Title
LI Microfoundations of Macroeconomics
School
Birmingham Business School
Department
Birmingham Business School
Module Code
08 30404
Module Lead
TBC
Level
Intermediate Level
Credits
10
Semester
Pre-requisites
Co-requisites
Restrictions
Modules is available to students studying in Dubai. Students on degree programmes outside economics for which this module is an option on their degree programme must also have passed Principles of Economics.
This course employs simple conceptual examples from microeconomics to highlight the link between microeconomics and modern business cycle theory. We use examples to analyse the optimum responses of economic agents to shocks to their economic environment, and thereby create a simple model that mimics some stylized facts typically observed during the business cycle. Topics such as inter-temporal household behaviour, macroeconomic coordination failure, wage and employment bargaining between industry and labour unions, job search and unemployment will be studied.
Learning Outcomes
By the end of the module students should be able to:
Demonstrate understanding of the basic theory of intertemporal choice
Apply this theory to choices of consumption, leisure and work
Show how these elements can be combined to produce a model that mimics fluctuations in economic variables over the business cycle