This module provides an introduction to modern macroeconomic analysis. Macroeconomics is concerned with some of the most pressing and fundamental questions economists can ask, such as: What determines economic growth? Why do economies exhibit expansions ('booms') and contractions ('busts') in output? What drives employment and wages, saving and investment? What causes inflation and why is it a problem? What, if anything, can governments do to improve the performance of an economy?

Microeconomics is concerned with the analysis of economic agents and markets at the individual level. Macroeconomics is concerned with the aggregate implications of microeconomic behaviour at the economy-wide level. So there is a clear connect between the actions of individual agents in the economy and the aggregate performance of the economy. This is the starting point for modern macroeconomic analysis - though macroeconomics has not always been understood or taught in these terms, and prior study of macroeconomics at A-level or equivalent is not based on this modern understanding of macroeconomics built on 'microfoundations'. Consequently prior study of economics is not necessary for taking this module and students who have studied macroeconomics previously may have to re-think how they understand the aggregate economy.

This module is suitable for study at Undergraduate level 1