School of Economics

Academic Year 2015-16

Term 1

COURSE CODE & COURSE TITLE: ECON102 - INTERMEDIATE MACROECONOMICS

Instructor Name
: Assistant Professor Juliana Yu SUN
Email
: yusun@smu.edu.sg
Tel
: 68085456
Office
: SOE #5071
Office Hour
: Thursday 4-6 pm
TA
Email
Office
Office Hour

: Sylvester YEO Kai Ren

: kr.yeo.2013@economics.smu.edu.sg
: SOE/SOSS GSR2-5
: Tuesday 4-6 pm

TA
Email

: LUO Xuan
: xuan.luo.2013@phdecons.smu.edu.sg

COURSE DESCRIPTION AND LEARNING OBJECTIVES

This course covers the study of economics at the macroeconomic level. This includes the definition of
macroeconomic aggregates such as gross domestic product (GDP), and the analysis of the behavior of
these aggregates over time using current macroeconomic theory and data. Basic algebra and
Intermediate Microeconomics are prerequisite for this course.
A more detailed list of topics is covered under weekly lesson plan on page 3. By the end of this course,
you will be able to:
Identify and have a working knowledge of the basic concepts and terminology of
macroeconomics
Demonstrate an understanding of the role of economic models in explaining economic
phenomena, as well as the limitations of those models
Think through economic relationships using the concepts and models you have learned.
Solve problems and make recommendations based on those models, graphically and
algebraically.
Critically analyze current economic news and events in light of the concepts learned in this
class.
ASSESSMENT METHODS
Class Participation
Problem sets
Mid-term exam (closed-book, in class week 7)
Final exam (closed-book, TBD)
Total

10%
15%
35%
40%
100%

These exams are to test that you have learned the material covered up to that point. You may not use
your notes, textbook, index cards, nor any electronic devices (computers, calculators, telephones). All
exams are cumulative.
If you believe that I have added up points wrong or have otherwise made a mistake in grading, please
submit a re-grade request in writing, outlining exactly what the issue is and what the nature of my
supposed mistake may be. You may find the corresponding form on eLearn. I shall look over the
entire exam, with special attention to your request. Thus your grade may increase, remain
unchanged, or decrease if I detect other errors at that time. I deserve more points, this does not
accurately reflect my knowledge of the material, I need a higher grade for such-and-such purpose
and so on are requests that I will neither listen to nor appreciate.

I will pass around an attendance sheet in every class. You will get the full point for class participation
if you attend at least 75% of all classes during the entire term.
There will be problem sets every two weeks. The problem sets will be posted on eLearn, and will be
due in the class next week. Grading of problem sets is based on efforts. You get 5 points provided
that it is obvious that you made a serious attempt at producing correct answers to ALL questions,
even if there are some mistakes.
The weight of an assignment that is missed due to a documentable emergency is transferred to the
final exam. If you miss an assignment for any reason other than an emergency, your score for that
assignment is zero. The burden of proof is on you. Missing too many classes or assignments for any
reason earns a grade of F.

ACADEMIC INTEGRITY
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication,
facilitation of acts of academic dishonesty by others, unauthorized possession of exam questions, or
tampering with the academic work of other students) are serious offences.
All work (whether oral or written) submitted for purposes of assessment must be the students own
work. Penalties for violation of the policy range from zero marks for the component assessment to
expulsion, depending on the nature of the offense.
When in doubt, students should consult the instructors of the course. Details on the SMU Code of
Academic Integrity may be accessed at http://www.smuscd.org/resources.html.

RECOMMENDED TEXT AND READINGS

Required: S. D. Williamson, Macroeconomics, Pearson Education, 5th edition.

Recommended: Michael Parkin, "Macroeconomics" 10th Edition, Addison Wesley.
N. G. Mankiw. Macroeconomics, 6th, 7th, or 8th edition, Worth.
Andrew B. Abel, Ben S. Bernanke, and Dean Croushore, Macroeconomics,
th
8 edition, Pearson

SUPPLEMENTARY REFERENCE
You may read related articles and news reports in newspapers or magazines, e.g., Financial Times,
Wall Street Journals, The Economists. For a broader and deeper analysis on current economic
situation, you may read World Economic Outlook and Global Financial Stability Report published
online by International Monetary Fund.

WEEKLY LESSON PLAN

Week

Topics, Readings and Activities

Chapter

Lesson 1

Lesson 2

Introduction
Measurement
Part 1: A Microfounded Approach to Macroeconomics
Labor Market Equilibrium: A One-Period Model

Lesson 3

Credit Market Equilibrium: A Two-Period Model

Lesson 4

A Real Intertemporal Model with Investment

11

Lesson 5

Monetary Intertemporal Model

Part 2: Economic Growth

Lesson 6

1, 2
4, 5

12,16
7

Introduction
The Solow Model

Lesson 7

Midterm Exam (1.5 hours)

Endogenous Growth Model

Recess Week

8
9

Lesson 8

Part 3: Business Cycles

Empirical data: cyclicality and comovements of macro
variables

10

Lesson 9

Market-Clearing Models of the Business Cycle

13

11

Lesson 10

Keynesian Sticky Wage Model

14

12

Lesson 11

Unemployment and The Phillips Curve

18

13

Lesson 12

Optimal Monetary Policy

17

14

Revision Week

15

Final Exam (2 hours)