Macroeconomic Theory

This course employs the tools of macroeconomics to study various macroeconomic problems. The problems range from economic stability in the short run, to change prices in the medium run, and economic growth in the long run. We cover macroeconomic theories and models, and apply them to address macroeconomic issues in the real world.

Macroeoconomic Theory I – Fall

The MT1 has two main parts: theories and applications. First, students gain conceptual and theoretical knowledge. Then, we develop models to explain the behavior of the economy in the short run.

The primary goal of first semester is to develop a consistent way of thinking about some key macroeconomic phenomena such as output gap, inflation, and unemployment.

In particular, we will try to address the following type of questions:

Macroeoconomic Theory II – Spring

The MT2 focuses on long-run dynamics of the economy by developing the tools of modern growth theory. 

The second semester covers Solow growth model as a description of how the economy evolves over time and emphasizes the roles of capital accumulation and population growth. 

After developing basic theories to explain the economy in the long run and in the short run, we turn to several topics that refine our understanding of the economy. 

We analyze some of the microeconomic decisions behind macroeconomic phenomena. 

Once students have solid command of standard macroeconomic models, we use these models as the foundation for discussing some of the key debates over economic policy. Then, we focus on the various debates over government debt and budget deficits. Finally, we discuss the financial system and its linkages to the overall economy. 

Textbook

Macroeconomics, G. Mankiw, 11th edition, Macmillian Learning

1. The Science of Macroeconomics

Chapter 1

Lecture_1.pdf

2. The Data of Macroeconomics

Chapter 2 and 3

Lecture_2.pdf

3. Money and Inflation


Chapter 4 and 5

Lecture_3.pdf
rq_moneyinflation.pdf

4. The Economy in the Short Run


Chapter  10

Lecture_5.pdf
rq_econ_fluc.pdf

5. The Core of Macroeconomic Theory


Recommended Textbook Chapters: 

The Principles of Macroeconomics, Case, Fair, and Oster. 13th Edition 

Chapters 8,9,19

Lecture_4_TheCore.pdf
reviewquestions.pdf

6. Microeconomic Foundations

Chapters 16 and 17

Macro_Theory_Micreconomic Foundations.pdf
RQ_Chapter16-17_RQ.pdf

7. Aggregate Demand I

Chapter 11

lecture_ad1.pdf
rq_ad1.pdf

8. Aggregate Demand II

Chapter 12

lecture_ad2.pdf
rq_ad2.pdf

9. Aggregate Demand III

Chapter 13

lecture_ad3.pdf
rq_ad3.pdf

10. Aggregate Supply

Chapter 14

Lecture_8_AS.pdf
RQ_AggSup.pdf

11. National Income

Chapter 13

Lecture_10_National_Income.pdf
RQ_National_Income.pdf

11. Long Run I

Chapter 8

Lecture_11_Growth_1.pdf
RQ_EconomicGrowth_1.pdf

12. Long Run II

Chapter 9

Lecture_12_Growth_2.pdf
RQ_Economic_Growth_2.pdf