Javier A.

Birchenall
javier.birchenall@ucsb.edu

Economics 101/Summer 2014

MTW 3:30 pm-4:50 pm
NH 1006

Intermediate Macroeconomic Theory

Course Description
ECON 101 is the basic course in macroeconomic theory. The main topics we will
cover include the measurement of economic activities; a theory of the
determination of consumption, investment and work decisions; a theory of
economic growth; and a theory of business cycles. Although the title of the class
emphasizes theory, several applications to the U.S. economy and discussions of
macroeconomic policy issues will be presented in class.
Macroeconomics can be taught in many different ways but we will consider an
approach that builds on basic microeconomic concepts. The main goal of the class is
for students to gain an active grasp of some of the main tools of modern
macroeconomic research. Some elementary knowledge of mathematics is required
but formal aspects would not be emphasized. Students should also be comfortable
with college level algebra and calculus.
The textbook for this class is:
Williamson, Stephen D.: Macroeconomics, 5rd edition, 2013, Boston, MA:
Addison Wesley.
A copy of the textbook can be found in the library under a 2 hour reserve. The
previous edition might work as well but you are responsible for checking and
identifying the discrepancies between editions. For your convenience, I placed a
copy of the fourth edition in reserve.
Class material such as the problem sets, solutions, practice questions, and any
additional material will be posted on the class webpage in gauchospace
https://gauchospace.ucsb.edu/courses/
Office hours and problem sessions
Office hours are Tuesdays from 1:30 to 2:30 am in my office NH 3021. For
appointments, please send me an email. Questions by e-mail are welcome to the email above. Since the class is relatively large, please contact your TA first. He would
let me know of concerns and problems with the class. Also leave at least one day for
response. Finally, check the announcements section of the class webpage for
changes in OH and other announcements.
The TAs for this class are:
Chris Pinchiff (cpinchiff@umail.ucsb.edu)

Grading
There will be five problem sets but only the best four will count, one in-class
midterm on Monday August 24, and an in-class final on Wednesday September 9.
Both dates are unchangeable. Problem sets are due in class (not in section) one
week after they are distributed. Students are encouraged to work together on
problem sets but every student enrolled in the course must hand in an individual
copy. Simply copying other persons work is considered cheating, and will be
penalized accordingly. Please note that since only the best 4 problem sets will count
for your grade you cannot miss more than one problem set. No late problem sets
will be graded. The final grade will be set according to the following percentages:
4 Problem sets
Midterm
Final

30
30
40

No make-up for the midterm exam will be given. Students are required to
take the final exam to pass the class.
Questions about the grading of your problem sets or exams should be addressed by
a written submission of the objection accompanied by the item for revision.
Students who would like their grade revised must drop off the exam or problem set
at my office within one week of when it is handed out.

Tentative outline
Weeks 1 and 2: Introduction, Methodology, Measurement of economic activities.
(Chap. 1-2.)
Measurement of economic activities, Business cycle measurement.
(Chap. 2-3.)
A one period model of the economy. (Chap. 4)
Weeks 3 and 4 [MIDTERM]: A one period model of the economy. (Chap. 5)
A one period model of the economy. Taxation. (Chap. 5)
Economic Growth. (Chap. 7
Weeks 5 and 6: Consumption, Savings, and Credit. (Chap. 9)
Credit Market Imperfections (Chap. 10)
Investment. (Chap. 11)
Real Business Cycles. (Chap. 11)
[FINAL EXAM]