Econ 100b Created 4/30/1996 Go to Brad DeLong's Home Page

---

Macro--Econ 100b Lecture Notes

(Spring 1996)

Brad DeLong

Introduction

Aggregate Economic Activity and Economic Policy
Macroeconomics, chapter 1.

• Lecture One. Economic instability--in production, employment, and prices--and economic policy (January 17)
• Economic growth and economic policy (January 19)

Measuring National Income
Macroeconomics, chapter 2.

• Lecture Two. Measuring economic activity: expenditure, income, production (January 22)
• Lecture Three. Making index numbers (January 24)
• Lecture Four. Measuring Unemployment (January 26)
• Problem Set: Macroeconomic Measurement; "P-Set One Answers"

Production and Distribution of National Income
Macroeconomics, chapter 3.

• Lecture Five. Factors of production and the production function (January 29)
• Lecture Six. Consumption and Investment (January 31)
• Lecture Seven. Short Run and Long Run Equilibrium (February 2)
• Problem Set: Production and Distribution; "P-Set Two Answers"
• Summary of the Classical Model (otherwise known as the full-employment model, or the long-run model; in short, the model of the economy developed in chapter 3 of Mankiw's textbook).

Business Cycles: Output, Prices, and Employment

Inflation
Macroeconomics, chapter 6.

• Lecture Eight. Money and Inflation (February 5)
• Lecture Nine. Seignorage; Real and Nominal Interest Rates (February 7)
• Problem Set: Money and Inflation; P-Set Three Answers still under construction
• Money, Velocity, and Inflation. A quick review of a derivation done in class on a blackboard too small for the auditorium

Fluctuations in Aggregate Demand
Macroeconomics, chapters 9 and 10, appendix to chapter 10.

• Lecture Ten. Investment, Savings, and Liquidity Preference (February 12)
• Lecture Eleven. Shifting and Tilting the IS and LM Curves (February 14)
• Lecture Twelve. IS and LM Shocks, and Real and Nominal Interest Rates (February 16)
• Case study: the Great Depression (Hmmm... I've just noticed that I have no class on February 19... I guess I will have to give a virtual lecture)
• Problem Set: Aggregate Demand; P-Set Four Answers

Aggregate Supply
Macroeconomics, chapter 11.

• Lecture Thirteen. Inflation, unemployment, and the Phillips curve (February 21)
• Lecture Fourteen. The Sacrifice Ratio and Other Topics (February 23)
• Problem Set: Aggregate Supply; P-Set Five Answers
• Lecture Fifteen. Macroeconomic Policy; Limits of Stabilization Policy (February 26)
• Lecture Sixteen. Automatic Stabilizers; Rules vs. Discretion (February 28)

Macroeconomic Policy

Domestic Macroeconomic Policy
Macroeconomics, chapter 12.

• Lecture Seventeen. Rules vs. Discretion; Examples: The Great Depression and 1993 Deficit Reduction (March 1)
• Lecture Eighteen. Term Structure; Tobin's q; Summary of IS-LM (March 4)
• Practice Midterm One

First Midterm

• Review (March 6)
• Midterm (March 8) ; Midterm Answers

Unemployment
Macroeconomics, chapter 5.

• Lecture Nineteen. Frictional and Structural Unemployment (March 11)
  (I'm going to be cutting back on this section and trying to move rapidly into open-economy macroeconomics).

Open Economy Macroeconomics

International Macroeconomic Policy
Macroeconomics, chapter 13.

• Lecture Twenty. International Economics; the Mundell-Fleming Model (March 13)
• Lecture Twenty One. Mundell-Fleming Continued; Large Open Economy (March 15)
• Lecture Twenty Two. Case Studies: Collapse of the ERM in 1992; Collapse of the Peso in 1994 (March 18)
• Problem Set: International Economics; P-Set Six Answers

International Trade and Investment
Macroeconomics, chapter 7.

• Lecture Twenty Three. Trade, Productivity, and International Investment (March 20)
• Lecture Twenty Four. Trade Balances and the Exchange Rate: Case Study: the U.S. in the 1980s (March 22)
• Problem Set: International Trade; P-Set Seven Answers

The Long Run

Long-Run Economic Growth
Macroeconomics, chapter 4.

• Lecture Twenty Five. Technological progress and long run growth (April 1)
• Lecture Twenty Six. Robert Solow's growth model (April 3)
• Lecture Twenty Seven. How well does this model work? (April 5)
• Lecture Twenty Eight. Growth Accounting and Growth Policy (April 8)
• Lecture Twenty Nine. Research and Development and Technological Progress (April 10)
• Problem Set: Long Run Growth ; P-Set Eight Answers
• Practice Midterm Two; "Practice Midterm Two Answers"

Second Midterm

• Review (April 15)
• Midterm Two (April 17) ; Midterm Two Answers

What Should the Federal Deficit Be?
Macroeconomics, chapter 16.

• Lecture Thirty. Debt and Deficits I (April 19)
• Lecture Thirty One. Measuring the Deficit (April 22)
• April 24 lecture cancelled due to a cold...
• Lecture Thirty Two. Effects of the Deficit (April 26)
• Lecture Thirty Three. Deficit Policy and the Social Insurance State (April 29)
• Problem Set/Assignment: Humphrey Hawkins

Conclusion

The Current Situation

• Lecture Thirty Four. Monetary Policy and Uncertainty (May 1)
• "Lecture Thirty Five". The Budget Deficit and Congress (May 3)

Final Review

• Review (May 6)
• A Practice Exam
• For more review information, look on the Macro--Econ 100b Logistics page.

>	Econ 100b Created 4/30/1996 Go to Brad DeLong's Home Page

Professor of Economics J. Bradford DeLong, 601 Evans University of California at Berkeley Berkeley, CA 94720-3880 (510) 643-4027 phone (510) 642-6615 fax delong@econ.berkeley.edu http://www.j-bradford-delong.net/