Course Syllabus

ECO202Y5Y-LEC 0101 - Macroeconomic Theory and Policy

Department of Economics

2024-2025

Course Objectives and Learning Outcomes

The goal of this course is to provide a comprehensive introduction to the subjects and methodologies of modern macroeconomics. The covered topics include the measurement of macroeconomic indicators, long-term economic expansion, inflation, recent labor market trends, factors behind the business cycle, and the efficiency of fiscal and monetary policies in addressing them, along with international trade and currency exchange rates. In addition to the theories and case studies covered in lectures, students should expect to learn how to navigate FRED database, which is a popular source for macroeconomic data.

Course Materials

Required: The required textbook for this course is Macroeconomics, by Charles I. Jones, 6th edition.

Suggested: Other recommended readings may be announced and posted throughout the course

Course Outline

General Outline of Topics Covered:

First Half:

Chapter 1: Introduction to Macroeconomics

Chapter 2: Measuring the Macroeconomy

Chapter 3: An Overview of Long-Run Economic Growth

Chapter 4: A Model of Production

Chapter 5: The Solow Growth Model

Chapter 16: Consumption

Chapter 17: Investment

Chapter 6: Growth and Ideas

Chapter 7: The Labor Market, Wages, and Unemployment

Chapter 8: Inflation

Second Half:

Chapter 9: An Introduction to the Short Run

Chapter 10: The Great Recession and the Covid-19 Pandemic: A First Look

Chapter 11: The IS Curve

Chapter 12: Monetary Policy and the Phillips Curve

Chapter 13: Stabilization Policy and the AS/AD Framework

Chapter 14: Financial Crises and the Short-Run Model

Chapter 15: DSGE Models: The Frontier of Business Cycle Re-search

Chapter 18: The Government and the Macroeconomy

Other topic if time permits

Evaluation

The course grade consists of term work worth 75% and a final exam worth 25%. Term work includes three term tests, two written assignments and quizzes.

Online Quizzes: There will be an online quiz on Quercus after each lecture (excluding those following a midterm). The quizzes will be available one day after the lecture and will be due on Sunday. Students must complete the quiz in one sitting, with a time limit of about an hour. These quizzes are designed to reinforce your understanding of the material. All quizzes will consist of multiple-choice questions, unlike the short-answer questions on the midterm. The best 20 out of 22 quizzes will count toward your final grade. There will be no extensions for quizzes, and late submissions will receive zero points.

Mid-term and Exam: Midterms are scheduled to take place on Saturday. The final exam will cover cumulative material, making it longer than the midterm exams. All exams will be close book. Additional specifics for each exam will be provided closer to the respective dates. Each mid-term will worth  15% each of your total grade.