Economics: Macroeconomic Theory

Keynesian and other theories of the macroeconomy. Government policies in relation to the problems of employment, price stability, and growth. Prerequisites: ECON 1400, ECON 1450; MATH 1212 or MATH 1234.

Prereqs enforced by the system: ECON 1400, ECON 1450; MATH 1212 or MATH 1234. PACE students with permission and override.

Have you ever wondered how inflation and unemployment are related, how migration affects the entire economy, or what tools the government uses to combat a recession? This course will answer your questions by introducing you to macroeconomic theories and the analysis of macroeconomic data. It offers a comprehensive study of contemporary macroeconomic issues and theories, presenting both classical and Keynesian perspectives. Key topics include long-term economic growth, real business-cycle theory, the labor market, monetary and fiscal policies, and the analysis of economic models. It emphasizes real-world applications, equipping students with the tools to understand major economic events, such as economic crises, productivity trends, and structural shifts. Throughout the course, you will analyze macroeconomic data, developing the skills to interpret and apply data in economic analysis.

Learning Objectives By the end of this course, students will be able to: 1. Understand and Apply Core Macroeconomic Theories: Demonstrate a thorough understanding of classical and Keynesian macroeconomic theories and apply these theories to analyze long-run and short-run economic fluctuations. 2. Analyze Real-World Economic Issues: Utilize macroeconomic models to evaluate and interpret key economic events, such as financial crises, unemployment trends, and the impact of monetary and fiscal policies. 3. Engage with Macroeconomic Data: Access, interpret, and manipulate macroeconomic data from primary sources such as the Bureau of Labor Statistics (BLS) and the Federal Reserve Economic Data (FRED). Conduct macroeconomic analysis through the lens of economic models and utilizing empirical data. 4. Evaluate Economic Growth and Business Cycles: Analyze the determinants of long-term economic growth and the cyclical nature of real output fluctuations.

Our class meetings will consist of lectures on scheduled topics and may also include problem-solving activities. Since this course builds on the graphical models covered in your previous principles of macroeconomics courses, I recommend reviewing those materials. The Tentative Course Outline provides the lecture plan and can be used to identify the scheduled chapters and sections to read before class meetings. This course cannot be completed successfully without attending most, if not all, class meetings. Since this is not designated as an online or hybrid course, class meetings cannot be attended remotely. During our regular class meetings, I will begin with a lecture on the chapter of the week, closely following the sequence of topics as they appear in the textbook. Occasionally, we may pause for an exercise or discuss a new article. When any additional materials are included as part of the lecture, you will be clearly informed. Typically, supplementary reading materials—such as news articles - will be made available in the weekly module on Brightspace. During lectures, I will pause to check if you have any questions. I always encourage you to ask questions, as it is a key part of testing your understanding of an idea. However, due to time constraints, I may not be able to answer all questions during class. Office hours are a great opportunity to ask any remaining questions. While you may email me questions, I generally do not encourage this because email is not a convenient medium for providing detailed responses. Therefore, if you have questions or are struggling with the material, please stop by during office hours. Class Exercises: 1. Quizzes: At the end of each chapter, we will have an in-class or Brightspace (some of them with Respondus Monitor) quiz. 10 minutes of class time is to be allocated for its completion. The Brightspace version will not have any time limit. Quizzes will typically be administered on Fridays if completed in class, with one quiz expected each week. Quizzes will be aligned with the in-class problems closely. 2. Problem Solving and Data Analysis: In addition to the quizzes, we will also work on some in-class problem sets. These problem sets are designed to give us hands-on experience in developing a model and understanding its outcomes, solving simple math problems, or interpreting trends in variables. Occasionally, I will ask you to turn in your answers or a self-evaluation based on shared solutions, written on paper or into a Brightspace dropbox. Some of our in-class exercises will require us to view, analyze, and interpret trends in macroeconomic variables. These exercises may require you to submit your work on Brightspace through assignment components. 3. iClickers: iClickers will be used to record attendance regularly. We will also use iClickers to conduct some class polls and quizzes. Homework Assignment: Homework assignments will be made available on Brightspace and will appear as ‘quiz’ components. A typical homework assignment will allow one to two attempts per question, will not have a time limit, and can be paused. However, you must complete them before the due date. Late submissions made before the ‘end date’ will be conditionally accepted—these conditions are the same as those under which absences are waivable according to UVM’s attendance policy. Please refer to the sections in this syllabus on UVM and course attendance policy for more details. I will allow no more than two late submissions without conditions throughout the semester. Once answer keys are released to the class, the homework assignments can no longer be attempted. Please note that assessments will only be graded if they are submitted through the designated medium. If you miss a homework assignment deadline on Brightspace and email me a copy or a screenshot of your work, I will not be able to accept or grade it. Similarly, if you miss a class meeting or leave early and email your self-evaluations and/or your answers, I cannot grade them either. Attendance: Attendance data will be collected through iClickers. In rare cases, we may have to resort to a partial roll call—for example, calling only the odd- or even-numbered students on the class roster. Attendance Policy According to UVM policy, certain absences such as those due to prolonged illness, military service, religious holidays, jury duty, court hearing, or intercollegiate sports participation—can be excused. I understand that you may occasionally have to miss class for reasons not covered under UVM’s policy. Life is unpredictable, and while we can’t plan for everything, we can prepare for what is expected. Throughout the semester, do your best to maintain good mental and physical health to minimize the chances of missing class. To accommodate occasional absences, I will drop the two lowest in-class quiz scores. This means that if you miss two quizzes, you won’t receive zeros, and those missed quizzes will be excluded from your grade. I cannot promise a specific number of excused absences. Excusals will apply to your Brightspace gradebook at the end of the semester. Please maintain record of all Dean’s notes and documents supporting your absence till the end of the semester. If you ever miss a class or need to leave early, please send me an email, even if you inform me in person since email is required for record-keeping purposes. Focus on your well-being, and don’t worry, rare absences won’t negatively impact your grade. Exams: Exam 1 and 2: The exam format will include multiple-choice, true-false questions, graphical problems, and mathematical problems. Exam 3: The exam format will include multiple-choice, true-false questions, graphical problems, and mathematical problems. This exam will be administered at the end of the semester. Pre-Exam Tests: A Respondus Monitor version of the Exam will be given on Brightspace to help you prepare for the Exams. Grading The course grade is determined by the following components: Exam 1 15% Exam 2 20% Exam 3 25% Homework Assignments 17% Attendance 5% Problem Sets and Data Analysis 3% Pre-Exam Tests 5% Quizzes 10% Total 100%