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Macroeconomics

Consumer and firm behaviour: 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. New Keynesian economics. Unemployment. Inflation, the Phillips curve, and central bank commitment.