Course Overview

Introduction to Macroeconomics and International Economics

This course provides an intermediate-level introduction to macroeconomics, focusing on both domestic and international aspects. Students will learn how the macroeconomy operates, the mechanisms behind business cycles and long-run growth, and the roles of fiscal and monetary policy. The course also covers the impact of international transactions and exposes students to current research and issues in macroeconomics.

• Textbook: A.B. Abel, B.S. Bernanke, & D. Croushore, Macroeconomics, 10th edition, Pearson, 2020.

• Course Components: Lectures, discussion, exams, quizzes, homeworks, and a country project.

• Assessment: Combination of midterm, final, homeworks, quizzes, and project.

Grading Procedure

Assessment Structure and Algorithm

Student performance is evaluated through a mix of exams, quizzes, homeworks, and a country project. The grading algorithm rewards improvement on the final and project, allowing students to potentially replace earlier scores.

• Midterm Exam: 20 points

• Final Exam: 30 points

• Homework 1: 10 points

• Homework 2: 10 points

• Top 10 Quizzes: 20 points

• Country Project: 10 points

Total: 100 points

Grading Algorithm

• If , then SCORE =

• If , then SCORE =

Additional info: This system encourages students to improve throughout the semester, especially on the final and project.

Assessment Table

Course Outline

Major Topics and Chapters

The course is structured into four main sections, each covering key macroeconomic concepts and models.

• I. Introduction (Chapters 1 and 2)

  • Macroeconomic Questions

  • Measurement Issues

• II. The Long-Run: Full Employment & Growth (Chapters 3-7)

  • The Production Function and the Labor Market

  • Saving and Investment

  • The Open Economy

  • Long-Run Growth Theory

  • Money and Prices

• III. The Short-Run: Business Cycles & Stabilization Policy (Chapters 9-11, 13)

  • The Facts

  • The IS-LM-FE Model

  • Classical Analysis

  • Keynesian Analysis

  • Exchange Rates and IS-LM in the Open Economy

• IV. Macroeconomic Policy: A Closer Look (Chapters 12, 14, 15)

  • Unemployment versus Inflation

  • Money Supply and the Federal Reserve System

  • The Government Budget, Deficits, and Debt

Schedule and Timeline

Weekly Topics and Key Dates

The course follows a structured timeline, with chapters, quizzes, homeworks, and exams scheduled throughout the semester.

• January 13 & 15: Ch.1, Begin Ch.2

• January 20 & 22: Finish Ch.2

• January 27 & 29: Begin Ch.3, Assign HW#1

• February 3 & 5: Finish Ch.3, HW#1 Due, Begin Ch.4

• February 10 & 12: HW#1 Answers, Finish Ch.4

• February 17 & 19: Ch.5

• February 24 & 26: Begin Ch.6

• March 3: Finish Ch.6, Review for Midterm

• March 5: Midterm Exam

• March 10 & 12: Midterm Answers, Begin Ch.7

• March 17 & 19: Finish Ch.7, Ch.8

• March 23-27: Spring Break

• March 31 & April 2: Begin Ch.9

• April 7 & 9: Finish Ch.9

• April 14 & 16: Begin Ch.10 & 11, Assign HW#2

• April 21 & 23: Finish Ch.10 & 11, HW#2 Due, Begin Ch.13

• April 28 & 30: HW#2 Answers, Finish Ch.13, Review for Final

• May 6: Final Exam

Quiz Timeline

Planned Quiz Dates and Topics

Key Macroeconomic Topics (as per Course Outline)

Summary of Main Concepts

• Macroeconomic Questions: Fundamental issues such as economic growth, unemployment, inflation, and policy effectiveness.

• Measurement Issues: National income accounting, GDP, and other macroeconomic indicators.

• Production Function & Labor Market: Relationship between inputs and output, labor market dynamics, and employment.

• Saving and Investment: Determinants of saving, investment, and their roles in economic growth.

• The Open Economy: International trade, exchange rates, and balance of payments.

• Long-Run Growth Theory: Models explaining sustained economic growth, such as Solow and endogenous growth models.

• Money and Prices: Money supply, inflation, and price level determination.

• Business Cycles & Stabilization Policy: Fluctuations in economic activity and policy responses.

• IS-LM-FE Model: Framework for analyzing equilibrium in goods, money, and labor markets.

• Classical Analysis: Market-clearing models and their implications for business cycles.

• Keynesian Analysis: The role of wage and price rigidity in macroeconomic fluctuations.

• Exchange Rates & IS-LM in the Open Economy: Effects of international transactions on macroeconomic equilibrium.

• Unemployment vs. Inflation: Trade-offs and policy challenges.

• Money Supply & Federal Reserve System: Central banking and monetary policy tools.

• Government Budget, Deficits, and Debt: Fiscal policy, government spending, and financing.

Additional info: These topics align closely with standard macroeconomics curriculum and provide a comprehensive foundation for further study and exam preparation.