Economics 105
Instructor:
Macroeconomics
Spring 2001
Professor Oscar Jorda
1150 Social Sciences and Humanities Bldg.
Phone: 752 7021
e-mail: ojorda@ucdavis.edu
CLASS URL: http://www.econ.ucdavis.edu/faculty/jorda/class/105/105.html
Textbook URL: http://www.worthpublishers.com/mankiw/
Class Meets:
M-W-F, 2:10 – 3:00 pm; WELLMAN 106
Section Meets:
Tuesdays. Section 1: 6:10 – 7:00 pm; Section 2: 7:10 – 8:00 pm
Location: HART 1130
Mondays, 3:00 – 4:00 pm, Thursdays, 1:00 – 2:00 pm,
Fridays, 1 – 2 pm
Office Hours:
Teaching Assistant:
Ryan Brady
111 Social Sciences and Humanities Building
Phone: 752 3029
e-mail: rrbrady@ucdavis.edu
Office hours: 11-12, Mondays and Wednesdays
"No Country, however rich, can afford the waste of its human resources. Demoralization
caused by vast unemployment is our greatest extravagance. Morally, it is the greatest
menace to our social order." Franklin Delano Roosevelt, Second Fireside Chat,
Washington, D.C. 9/30/34
Course Goals: Economic Growth, the Government Debt, the Budget Deficit, Interest Rates,
Inflation, Unemployment, Exchange Rates, Fiscal and Monetary Policy, and many other
macroeconomic variables interact in ways that ultimately affect the welfare of entire countries.
This course provides a modern view of macroeconomic analysis and, macroeconomic policy – it
studies the engines of growth and it studies how fiscal and monetary policy can foster economic
stability around a steady growth path.
Pre-requisites: 1A, 1B and Mathematics 16A or 21A or their equivalents with a grade of C- or
better. The course-contents assumes the reader is familiar with basic calculus and algebra.
Exclusions: Not open for credit to students who have completed 101. Intended for non-majors.
Textbook: N. Gregory Mankiw, Macroeconomics, 4th edition. Worth Publishers. I highly
recommend that you use the study guide and that you visit the book’s web site:
http://www.worthpublishers.com/mankiw/
Additional Resources: Check the class web page for additional materials such as formula sheet,
practice exercises, economic commentary, economic data, and other links.
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Recommended Reading: The weekly magazine The Economist contains the highest quality,
economic commentary of U.S. and International events (www.economist.com). The Wall Street
Journal (www.wsj.com) and The Financial Times (www.ft.com) are the best two daily business
newspapers. Out of the three, I would recommend that you read The Economist. On a daily basis,
The New York Times (www.nytimes.com) is among the best daily newspapers and the business
section is quite good. The electronic version of The New York Times is free.
Complementary Literature:
 Olivier Blanchard, Macroeconomics, 2nd edition, Prentice Hall
 Rudiger Dornbusch, Stanley Fischer and Richard Startz, Macroeconomics, McGraw-Hill.
 Robert Hall and John Taylor, Macroeconomics, 5th edition, Norton.
Course Grading:
Homework
Midterms (2)
30%
35%
Final
(Comprehensive)
35%
Friday, April 27
Friday, May 25
Wednesday, June 13, 8-10 am
Homework must be handed on time. There is no credit for late homework.
Please contact the T.A. at your convenience if you need special arrangements and rescheduling
for midterms and final. All requests must be made by April 13 (no exceptions). Make-up exams
are not permitted. Consult the web schedule for more details on homework due dates.
Regrade Policy:
I do not engage in grade bargaining. I try to apply the same standard to everyone, which makes
special considerations unfair to your peers. If you feel a question was unfairly graded or there was
a mistake, please submit it in writing to your T.A. no later than one week after the exam. This
allows your T.A. to go over the exam carefully and give your queries due consideration.
Important Dates:
Week 1 – April 1 to April 7
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Monday: practice multiple-choice test.
Wednesday: I am away. Paul Bergin will substitute for me.
Friday: I am away. Paul Bergin will substitute for me.
Week 2 – April 8 to April 14
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Monday: practice multiple-choice test.
Wednesday: Problem Set 1 due.
Week 3 – April 15 to April 21
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Monday: practice multiple-choice test.
Week 4 – April 22 to April 28
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Monday: practice multiple-choice test.
Wednesday: Problem Set 2 due.
Friday: MIDTERM 1
Week 5 – April 29 to May 5
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Monday: practice multiple-choice test.
Week 6 – May 6 to May 12
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Monday: practice multiple-choice test.
Wednesday: Problem Set 3 due.
Week 7 – May 13 to May 19
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Monday: practice multiple-choice test.
Week 8 – May 20 to May 26
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Monday: practice multiple-choice test.
Wednesday: Problem set 4 due.
Friday: MIDTERM 2
Week 9 – May 27 to June 2
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Monday: (Holiday) practice multiple-choice test.
Week 10 – June 3 – June 9
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Monday: practice multiple-choice test.
Wednesday: Problem set 5 due. Last day of class.
Course Outline:
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TOPIC I: MACROECONOMIC DATA (Ch. 1)
TOPIC II: NATIONAL INCOME ACCOUNTING (Ch. 2-3)
TOPIC III: PRODUCTION, DISTRIBUTION AND ALLOCATION (Ch. 3)
TOPIC IV: ECONOMIC GROWTH (Ch. 4-5)
TOPIC V: UNEMPLOYMENT (Ch. 6)
TOPIC VI: MONEY AND INFLATION (Ch. 7)
TOPIC VIII: ECONOMIC FLUCTUATIONS: THE IS-LM MODEL (Ch. 9-11)
TOPIC VIII: AGGREGATE SUPPLY (Ch. 13)
TOPIC IX: POLICY DEBATE (Ch. 14)
TOPIC X: CONSUMPTION (Ch. 16)
TOPIC XI: GOVERNMENT DEBT (Ch.15)