Macroeconomics

Course Description

Provides an overview of the tools of modern macroeconomic theory. Students will gain an understanding of these tools, their limits, and their application to policy issues. Prerequisite: Admission to the Economics Concentration of the Ph.D. in Business Administration program or permission of the Director of Graduate Studies.

Syllabus

Student Learning Outcomes, Goals, Objectives:

Students successfully completing this course will be able to:

  • Explain the theoretical foundations of modern macroeconomic theory, including (but not limited to) the Solow model, overlapping generations model, dynamic consumption-saving model, the neoclassical model and the New Keynesian model

  • Describe the main features of Real Business Cycle (RBC) theory and the critiques of RBC theory

  • Understand the main frictions in New Keynesian models and the implications for fiscal and monetary policy

  • Describe how a liquidity trap affects monetary policy

  • Understand how institutions can explain why standards of living and rates of growth differ across countries

  • Apply the IS-LM and AS-AD models to understand how shocks to the economy affect output, the price level and interest rates

  • Explain how economists attempt to identify exogenous monetary policy shocks

Course Grading Information:

Activity/Performance Measure

Percentage/Points

Problem Sets

25%

Weekly Reading Summaries

25%

Midterm Exam

25%

Final Exam

25%

Grading Scale

Percentage

Letter Grade

93% and above

A

At least 90% but less than 93%

A-

At least 87% but less than 90%

B+

At least 83% but less than 87%

B

At least 80% but less than 83%

B-

At least 77% but less than 80%

C+

At least 73% but less than 77%

C

At least 70% but less than 73%

C-

At least 67% but less than 70%

D+

At least 63% but less than 67%

D

At least 60% but less than 63%

D-

Less than 60%

F

Attendance/Participation:

Students are expected to attend weekly course meetings.

Course Materials Purchased by the Students:

None.

Scholarly Perspectives

This course engages diverse scholarly perspectives to develop critical thinking, analysis, and debate and inclusion of a reading does not imply endorsement.