MICRO-AND MACRO-ECONOMICS Professor: PATRICIA GABALDON QUIÑONES E-Mail: pgabaldon@faculty.ie.edu Published by IE Publishing Department. Last revised, September 2016. 1
LEARNING OBJECTIVES The course will cover the most important economic theories and concepts that relate to the microeconomic environment of businesses. At the end of the course students will comprehend these concepts and tools of economic analysis, will have a more formal vision of why and how consumers and firms take decisions as well as the implications of Governments microeconomic policies on the welfare of consumers and producers. BIBLIOGRAPHY https://ie.on.worldcat.org/coursereserves/course/id/10003255 https://ie.on.worldcat.org/coursereserves/course/id/10003255 METHODOLOGY This course uses technical notes and/or a textbook that explains the concepts and theories covered in class. The course is organized around lectures to present the relevant concepts and theories as well as class discussions related to them. Students are expected to be fully prepared to discuss theoretical and practical issues covered in class by means of the accompanying readings for a particular session. Students will work practical assignments, either individually or in groups, in order to reinforce the understanding of the relevant material. PROGRAM SESSION 1 Introduction. Economic Environment and Business Strategy. B.C.: Chapter 2 - Thinking like an economist SESSION 2 Supply and demand and elasticity (I). B.C.: Ch.4. The market forces of supply and demand B.C.: Ch.5. Elasticity and its application 2
SESSION 3 Supply and demand and elasticity (II). Multimedia exercise M.D.: Making Money on Oil. Instrucciones (EC2-108-M-) SESSION 4 Welfare State, public goods and externalities. B.C.: Ch. 6. Supply, demand and Governement policies B.C.: Ch.10. Externalities SESSION 5 GDP, and standards of living. B.C.: Ch.23. Measuring a Nation s Income M.D.: Economic Environment Infographics (EC4-001-I-M) Quizz 1 (20 mins - at the end of the session) SESSION 6 Inflation: complications and drawbacks. B.C.: Ch.24. Measuring the Cost of Living SESSION 7 Unemployment and the Phillips curve B.C.: Ch.28. Unemployment SESSION 8 Understanding development, income Inequality and poverty M.D.: Brazil. An economic simulator (EC1-129-I-M) 3
SESSION 9 Business cycles, potential output and gaps; aggregate supply and aggregate demand. B.C.: Ch.33. Aggregate Demand and Aggregate Supply M.D.: Interactive Graph of the aggregate supply and aggregate demand model (EC2-027-I-M) Quizz 2 (20 mins - at the end of the session) SESSION 10 Fiscal policy, deficit and debt B.C.: Ch 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand M.D.: Data and indicators for country analysis (EC1-023-I-M) SESSION 11 Banking, central banks and monetary policy; the monetarist theory. B.C.: Ch.29. The Monetary System SESSION 12 Now... an open economy!!!. B.C.: Ch. 10. The Balance of Payments (Carbaugh) B.C.: Ch. 11. Foreign Exchange (Carbaugh) B.C.: Ch. 12. Exchange rate determination (Carbaugh) SESSION 13 Policy mix and coordination and supply-side proposals. Other: Doing Business Report 2013 (WB) Other: The Global Competitiveness Report 2013-2014 SESSION 14 Recap M.D.: Case: 10 Downing Street (EC1-126-I-M) SESSION 15 Final Exam 4
EVALUATION METHOD Criteria Score % Final Exam 50% 2 Intermediate tests 30% Class Participation 20% Two intermediate quizzes (30%). These tests are performed in the last 20 minutes of three sessions (see program for details). They will consist of 5 multiple choice questions each and an essay question. Each will contribute equally to the final grade and they will be accumulative. Class participation (20%). Participation will be based on the student's contribution to the development of content in the sessions, not in terms of the number of interventions. Class attendance may also be considered within this participation. Final Exam (50%) Comprenhensive test, composed by multiple choice and essay questions, applying all the concepts and ideas seen in class. 5