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The aim of this course is to introduce students the mathematical modeling of macroeconomics. The course will provide students an introduction to inter-temporal consumption-saving and labor-leisure choice, exogenous growth, neo-classical growth model and business cycles.
Measurement. Business Cycle Measurement. Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization. A Closed-Economy One-Period Macroeconomic Model. Economic Growth: Malthus and Solow. Income Disparity Among Countries and Endogenous Growth. A Two-Period Model: The Consumption–Savings Decision and Credit Markets. Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security. A Real Intertemporal Model with Investment. Money, Banking, Prices, and Monetary Policy. Market-Clearing Models of the Business Cycle. Unemployment: Search and Efficiency Wages. Inflation, the Phillips Curve, and Central Bank Commitment.
Upon succesful completion of this course, a student will be able to
1. Explain inter-temporal consumption-saving and labor-leisure choice.
2. Analyze exogenous growth.
3. Describe neo-classical growth model.
4. Explain business cycles.
5. Explain unemployment theories.
6. Describe the role of government in consumer and firm decisions