This module extends students' understanding of key concepts in the analysis of consumer and producer behaviour under different market conditions and permits a fuller examination of the factors affecting aggregate demand and supply. Particular attention will paid to the role of choice and information in economic decision making. The module will particularly focus on the role of market structure as a key factor determining the equilibrium level of output and price. Economic efficiency, including the coverage of externalities and public goods, will be also studied. At the macroeconomic level, the module will focus on the IS-LM model and its extension into the Mundell - Fleming model. The debates between policy rules and discretionary as well as active and passive policy will be examined. Alternative theories of aggregate supply will be examined. This will allow analysis of the factors affecting inflation, unemployment and the balance of payments.

Throughout the module, the emphasis will be on the application of theory to practical problems and policy issues.

Dornbusch R, Fischer S and Startz R. (2004), Macroeconomics, 9th ed, McGraw-Hill
Mankin N G (2002) Macroeconomics, 5th ed, Worth
Mansfield E & Yoke G (2000) Microeconomics, 10th ed, Norton
Perloff J M. (2006), Microeconomics, 4th ed., N.Y.: Pearson Addison Wesley

Have studied :- Boom, Bust and Business (BLB00001-1) or People, Prices and Profits (BLB00002-1) or equivalent.

The Library
The internet

The learning strategy for the module requires students to commit 300 learning hours (including assessment) of this there will be 72 hours of class support and 228 hours of independent and self directed study, (48 hours of formal lectures/large group activities, 24 hours of tutorials). Learning support materials will be provided for the module.

Students are expected to work in small groups to prepare answers to problems and exercises provided in the weekly handout and present their answers to the class in the weekly seminars. These problems and exercises will not only strengthen students' understanding of the topics covered in lectures but will also extend their knowledge of the subject by application of the theory to policy issues, and allow formative feedback.

Course work includes problems and exercises which will be handed in and a short presentation given to the class,

20% in semester 1 (Tests Learning Outcomes 1-3 and 5);
20% in semester 2 (Tests Learning Outcomes 1-3 and 5);
Class test at the end of the first learning block, 30% (Tests Learning Outcomes 1, 2, 4 and 6)

1-hr examination at the end of the second learning block, 30% (Tests Learning Outcomes 1, 2,4 and 6)