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AGEC 313: Microeconomic and Macroeconomic Theory

Credits: 
3

This course builds on courses AGEC 201 and AGEC 202. It presents the theoretical underpinings of both macroeconomic and microeconomic phenomena.  At the end of the course, candidates should be able to understand and explain economic phenomena using geometry, calculus and difference equations.  Candidates are also required to apply the theories learnt to the economy of Ghana. 

  1. Introduction: Overview of the Nature of Scientific Theory. The Scientific Method of Enquiry. Methodology of Economics.  Nature and Purpose of Economic Theory. Concept of an Economy. Definition of Macroeconomic Theory. Definition of Microeconomic Theory. Concept of a Market. 

II .           Microeconomic theory: Theory of Production.  Theory of Cost. Theory of Factor Demand. Theory of Product Supply. Theory of Consumer Demand. Consumer Surplus.  Producer Surplus.  Economic Welfare.

III.          Macroeconomic theory: The Classical Theory of Employment and Aggregate Output. The Classical Theory of Inflation. The Complete Classical System. The Keynesian Theory of Employment and Aggregate Output. IS/LM Framework. Monetary and Fiscal Policy. The Keynesian Theory of Inflation. The Inflation-Unemployment Relationship. Structuralist Theory of Inflation. The Complete Keynesian System. The New Classical Macroeconomics:  Rational Expectations Theory. Theory of Business Cycles.