The course is intended to present the most relevant economic theories in order to allow students to learn the economic reasoning necessary to understand how the economic system and the markets work. The course starts with a description of the main economic problems and the tools necessary to understand the structure of an aggregate economic system. Then, the course presents the key micro-foundations of the mainstream macroeconomic theory, focusing in particular on consumer theory, firm theory and the reaching of equilibrium in competitive and monopolistic markets. Following this, the two most important macro-economic theories about the functioning of an economic system are presented. The first one is the neo-classical school, whereas the second one is the Keynesian one. Both theories focus on how resources are allocated in the short run. The last part of the course will deal with open macro-economics, i.e. the equilibrium of an aggregate economic system open to exchanges in goods, services and capitals with the rest of the world. The specific goals of the course are to provide the students with: 1. the knowledge of the main economic theories on the functioning of an aggregate economic system; 2. the ability to critically interpret the news about the economic conditions of a country and of the rest of the world. Practical cases are integrated with textbook teaching as relevant.

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, as well as academic papers discussed during the course 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.

Slides; Libro di testo; Esercizi risolti;

Modalità di esame: Prova scritta in aula tramite PC con l'utilizzo della piattaforma di ateneo;

Exam: Computer-based written test in class using POLITO platform;

... Written test; The exam is made up of three parts: one Microeconomics exercise, one open-ended National Accounts question (with sub-questions), and Macro true/false questions to be motivated. The Microeconomics question, which entails calculations and graphs, will be done ON PAPER at the beginning of the exam. This part is worth 14/30 points. Students will have 40 minutes to complete it. After this time, they will have to hand in the exam paper. Then, the computer-based part of the exam will start. The National Accounts and the Macro true/false questions will be COMPUTER-based. The Lockdown browser is required for it. Students will access the exam platform and, from that moment on, will have 1 hour to complete the second part of the exam. This part is worth 16 points in total (6 points for the National Accounts questions and 10 for the Macro true/false questions). At first inscription only, a two-points bonus is granted to students. This means that, if students register for the exam but do not show up or withdraw, they loose the bonus. The objective of this incentive is to convey the importance of taking a credible commitment when they register for the exam. In case students registered for the exam but do not feel prepared for it, they can un-register until three days before the exam without losing the bonus. The exam covers 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), as well as any academic papers discussed during the course. 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. It is permitted to use a non-programmable calculator. Writing paper, including sketch paper, will be provided by the instructors. 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.

Gli studenti e le studentesse con disabilità o con Disturbi Specifici di Apprendimento (DSA), oltre alla segnalazione tramite procedura informatizzata, sono invitati a comunicare anche direttamente al/la docente titolare dell'insegnamento, con un preavviso non inferiore ad una settimana dall'avvio della sessione d'esame, gli strumenti compensativi concordati con l'Unità Special Needs, al fine di permettere al/la docente la declinazione più idonea in riferimento alla specifica tipologia di esame.