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Catalog Description
Theories of the determinants of aggregate income, employment and prices.
3 units.
Note: May be taken independently of ECON 200B.
Scope and Objectives
Macroeconomics is the study of the economy as a whole. It deals with important questions about economic growth, business cycles, and economic policy. This course is an introduction to the study of macroeconomics at an advanced level. During this semester, we will review the fundamental models from your undergraduate economics classes, examine new developments in macroeconomics, and apply these theories (old and new) to the data.
Macroeconomics as a field can be separated into two broad areas: (i) economic growth theory (long run) and (ii) theories of economic fluctuations (short run). This course will be divided according to these areas, while incorporating empirical analysis in evaluating and applying the models. In order to do empirical work in macroeconomics, it is essential to understand the measurement of key aggregate variables like GDP, inflation, and unemployment.
You are expected to have a working knowledge of intermediate macroeconomics (ECON 100A), calculus (MATH 26A and ECON 200M), and econometrics (ECON 141) before coming into this course. The readings and notes for this course rely heavily on multivariate and differential calculus, econometrics, and detailed knowledge of intermediate economic theory. If it has been some time since you've taken these courses, then please be prepared to give yourself more time to review this material before attempting assignments and other work.
The goal of this course is to provide both an overview of the field students who will not continue in macroeconomics and a starting point for those who plan to study macroeconomics and monetary economics in more depth. The majority of you will go on to do an empirical thesis or project. The sooner you begin applying the skills you acquired in ECON 141/200M, the better prepared you will be to read research articles in your field courses and to do your own research. In addition to gaining general knowledge of the macroeconomy, you will acquire basic quantitative skills essential in your future economic classes and research. |
