Face-to-face , second term, 30 hours of theory and 15 hours of exercises.

Second term
Tuesday from 09:00 to 11:00 at 109 Marais 301

This course will be taught in English. Reading material will also be in English.

The aim of the course is to provide an intuitive and formal
understanding of the basic principles of economics and builds upon the foundations studied in Economics I.

We start by discussing the fundamental reasons of the benefits of exchange : comparative advantage. We then study the market for production factors (e.g. labor and capital). Most attention will be paid, though, to the study Macroeconomics. The students will be introduced to economic growth, inflation and unemployment, after which the course will focus on macroeconomic policy. Finally, an introduction to the basic tools of finance will be taught.

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Comparative advantage and markets for production factors (3 classes)
1) Comparative Advantage (Chapter 3 and 9)
2) The market for production factors (Chapter 18)
3) Earnings and discrimination (Chapter 19)

Macroeconomics (10 classes)
4) Unemployment (Chapter 28)
5) How to measure a nation's income? (Chapter 23)
6) How to measure the cost of living ? (Chapter 24)
7) Economic growth (Chapter 25)
8) The monetary system (Chapter 29)
9) Money growth and Inflation (Chapter 30)
10) Aggregate demand and aggregate supply (Chapter 33)
11) The influence of Fiscal and Monetary policy on aggregate demand (Chapter 34)
12) Introduction to Finance (see lecture notes)
Some Further Reading: The Economist, The Financial Times, Trends/Tendances …

The course objectives are achieved via weekly theoretical lectures and via smaller, group sessions where the teaching assistant works with students on problem sets. During lectures emphasis will be placed on theoretical exposition as well as examples taken from business and economics press and from current events.

A written examination made up of problems similar to those seen in problem sessions as well as questions relating to course material, will be used to determine each student's course grade. Although students are not formally graded on solutions to problem sets distributed by the teaching assistant, students are strongly encouraged to work on these problem sets prior to attending the session in which they are discussed. The teaching assistant will make available, prior to the end of the semester, solutions to the problem sets.

Economics, 2011, N. Gregory Mankiw, Mark P. Taylor, South-Western, Cengage Learning, 2nd Edition, ISBN: 978-1-8448-0870-0

The slides used during the lectures will be provided to the students.

Students are strongly encouraged to consult the textbook for additional explanation, numerical examples, and discussion of topics covered in the course. The textbook is intended to provide a complement to course lectures and problem sessions. Students will not be responsible for textbook material addressing topics not covered in course lectures or problem sessions.