Attendance to the course is expected to provide the students new competences and understanding on the following topics: 1. Main macroeconomic variables of a country (inflation rate, GDP, unemployment rate, public debt); 2. Microeconomic theories of the consumer and of the firm, market equilibrium in competitive and monopolistic markets; 3. Neoclassical and Keynesian macroeconomic theories on the effects of monetary and fiscal policies in a closed and in an open economy. In terms of analytic and critical assessment abilities, it is expected that the students will acquire the following: 1. Ability to critically assess and evaluate information regarding the Italian and international economic situation; 2. Ability to interpret the governmental decisions in political economy; 3. Ability to evaluate the impact of economic policies on the different economic agents (households, firms, public administration, government). At the end of the course, thus, the students should be well equipped to analyze the details of the functioning of an economic system, the market dynamics as well as the scope for public policy in the forms of monetary and fiscal policies. Students will also be able to apply modern macroeconomic theories to the interpretation of events of the recent international economic history.

Basic knowledge of math and calculus.

The course is divided into three parts: the first part is devoted to national accounts and the analysis of the economic system; the second one deals with basic microeconomics, and in particular consumer theory, firm behavior and market functioning (perfect competition and monopoly). The third part deals with macroeconomics and the open economy. The detailed syllabus is the following: First part. Introduction to Economics and National Accounts: (10 hours) 1. Basic concepts, problems and definitions of Economics; 2. National accounts; 3. Modeling the economic system; Second part. Modern microeconomics: (30 hours) 4. The economic system and its functional operators: households (consumption, savings, and supply of labor); 5. The economic system and its functional operators: firms (production, investments, and demand for labour) 6. Market analysis: perfect competition and monopoly; Third part. Modern macroeconomics: (40 hours) 7. The financial market and the demand and supply of money; 8. From neoclassical microeconomics to the full employment macroeconomics: the labor market, the theories on the interest rates, the role of economic policy; 9. Unemployment in Keynesian macroeconomics: the IS-LM and AD-AS models 10. Open economy: the Balance of Payments, the internal and external equilibrium with fixed and flexible exchange rates.

The course is organized into lectures and exercise sessions. Exercises will be proposed at the end of each topic. The slides of the course and the exercises with solutions will be published on the portal. Real-world applications and case studies will also be presented during the lectures. Actual data on the Italian and international economies as well as examples of economic policies implemented in Italy, Europe as well as in other countries will be employed.

- Course slides - Besanko & Braeutigam: Microeconomics, 4th ed., 2011, Pearson (chapters 2-11) - Dornbusch, Fischer & Startz: Macroeconomics, 11th ed., 2011, Mc Graw Hill (Chapters 2, 5-7,9-15) The Besanko-Braeutigam textbook covers all topics dealt with the Microeconomics part; the Dornbusch-Fischer-Startz textbook covers the topics dealt with the Macroeconomics part. The texts are sufficient for a thorough preparation of the exam. Moreover, the course slides will be provided. To the ends of promoting an entire knowledge of the exam structure, the text and solutions to past exams from 2017 on will be provided.

Exam: Written test;

The exam is written, it lasts 2 hours and it consists of three questions (one open macro-economic question, one micro-economics exercise and five true/false questions requiring mandatory motivation). It will cover the following topics: 1) National accounts and the market (Dornbusch-Fischer-Startz textbook chapter 2; Besanko-Braeutigam textbook chapter 2) 2) Micro-economic theories of the consumer (Besanko-Braeutigam textbook chapters 3,4,5), of the firm (Besanko-Braeutigam textbook chapters 6,7,8) and the market (9,10,11) 3) Neoclassical and Keynesian macroeconomics (Dornbusch-Fischer-Startz textbook chapters 5-7,9-15) The exam is intended to ascertain the knowledge of i) concepts and definitions characterizing an economic system; ii) the the understanding of firm and consumer theory and of the functioning of markets; iii) the main macroeconomic theories, iv) the ability to identify the effects of fiscal and monetary policies, v) the ability to apply modern macroeconomic theories to the interpretation of real-world macro-economic events and the decisions of monetary and fiscal authorities. The micro-economics exam will weigh 12/30 points, while the macroeconomics open question and the five true/false questions will weigh 9/30 points each. It is permitted to use a non-programmable calculator. Writing paper, including sketch paper, will be provided. The consultation or use of any kind of material (e.g., textbooks, lecture notes, slides) during the exam is strictly forbidden. Any form of communication is strictly forbidden, as well as the use of mobile phones, personal computers, tablets or any electronic device other than the calculator. The solutions to the exams will be published jointly with the results and with date of the inspection of the exams. No oral exam is foreseen.

In addition to the message sent by the online system, students with disabilities or Specific Learning Disorders (SLD) are invited to directly inform the professor in charge of the course about the special arrangements for the exam that have been agreed with the Special Needs Unit. The professor has to be informed at least one week before the beginning of the examination session in order to provide students with the most suitable arrangements for each specific type of exam.