Economics 104
Spring 2021
Macroeconomics is the study of the performance of the economy as a whole. Underlying the existence of macroeconomics as a separate field of study are the phenomena of economic growth and economic fluctuations. The main purpose of this course to characterize and explain movements in output, inflation and unemployment. We will study economic performance with an eye for possibly improving that performance through the use of the two major macroeconomic policy tools: fiscal policy and monetary policy.
The course is taught at the intermediate level and is aimed at sophomores and juniors majoring in economics (although students in other majors are welcome). All students are required to have successfully studied introductory macroeconomics and introductory microeconomics (Econ 51 & 52 or the equivalent) along with calculus (Math 30 or the equivalent).
The course meets two times a week. The course requirements are six problem sets, a midterm exam, and a final exam. The problem sets will count for 30%, the midterm for 30%, and the final for 40% of the course grade. The midterm will be held in class on Wednesday 3 March. The final exam will be given on Wednesday 12 May. There may be an optional essay assignment. This assignment will can raise your grade if you are borderline. It will not hurt your grade. All problem sets will be posted on Sakai. They are submitted to Sakai, and discussed in class.
The textbook for the course is N. Gregory Mankiw, Macroeconomics, 10th edition, Worth Publishers, 2019. This is available at the Huntley Bookstore. The lectures will follow the sequence of topics as they are presented in the text. So you should be reading the text as the course progresses. Problem sets will be posted on Sakai about a week before they are due. The problems will be similar to the problems in the textbook, and will be discussed in class.
If any material is ever unclear, or even if everything is perfectly clear, please come to chat with me about economics or anything for that matter. If you have a short question, feel free to email me. For longer and better explanations, please come by the office during office hours or make an appointment to see me at your convenience. You can leave voicemail at the office or send me email 24 hours a day. I can be reached at the following:
Office: Fletcher 216
Office Hours: Monday-Thursday 2:00-3:00pm PST, and by appointment
Phone: 909-607-3769
Email: lyamane@pitzer.edu
Please join me for lunch every Friday from 12-1pm in the east wing of McConnell Dining Hall. Look for the table with the Economics Lunch sign. These are just office hours over lunch. We can talk about problem sets or anything that interests you.
I. The Science of Macroeconomics Ch 1
II. The Data of Macroeconomics Ch 2
III. National Income: Its Production, Distribution and Allocation Ch 3
IV. Monetary System Ch 4
V. Inflation Ch 5
VI. The Open Economy Ch 6
VII. Unemployment Ch 7
VIII. Economic Growth Chs 8, 9
IX. Introduction to Economic Fluctuations Ch 10
X. Aggregate Demand Chs 11, 12
XI. Aggregate Demand in an Open Economy Ch 13
XII. Aggregate Supply Ch 14
XIII. A Dynamic Model of AD-AS Ch 15
XIV. Stabilization Policy Ch 16
XV. Deficits and the Debt Ch 17
XVI. The Financial System Ch 18
XVII. Consumption and Investment Ch 19
XVIII. Lessons and Limits Epilogue
Budget of the United States Government
Problem Set #2
Due Wednesday 24 February
MIDTERM Wednesday 3 March
Problem Set #3
Due Wednesday 17 March
Problem Set #4
Due Wednesday 31 March
Problem Set #5
Due Wednesday 14 April
Problem Set #6
Due Wednesday 28 April
FINAL EXAM Wednesday 12 May at 9am
Week 7
Week 8