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Unit information: Intermediate Economics 1 in 2015/16

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Unit name Intermediate Economics 1
Unit code EFIM20008
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

Economic Principles 1 and Economic Principles 2



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.

Intended learning outcomes

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.

Teaching details

40 Lectures/Exercise Lectures

10 tutorials

Assessment Details

Summative assessment:

Three-hour closed book exam.

Formative assessment:

6 short assignment, consisting mainly of problems.

Reading and References

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.