ECON 20A: INTRODUCTION TO MACROECONOMICS
BRANDEIS UNIVERSITY, SPRING 2022
COURSE OVERVIEW
The main purpose of this course is to introduce you to the field of macroeconomics. This
involves the study of the overall economy, focusing on aggregate variables such as output,
inflation, interest rates, budget and trade deficits, etc. These variables support three key
macroeconomic goals: full employment, economic growth and price stability. Employment
guarantees that those willing and able to work can find jobs, growth ensures that material
standards of living rise, and a low and stable rate of inflation aids individuals in planning
for the future. Understanding these processes is the first step towards designing policies
to improve macroeconomic performance. As a result, attention shall also be devoted to
the role of the government in a market economy, evaluating the adequacy of its policies.
This analysis will resort to real-world applications and, naturally, economic theory. In this
context, one other key purpose of this course is to introduce you to the main tools of
economic reasoning. This is built around deductive logic, using simple algebraic and
graphical instruments to explore the trade-offs and incentives behind decision processes.
This mode of critical thinking enables us to move from vague and rambling assessments
of reality to the analytic, systematic and objective approach that characterizes the science
of economics. Hopefully, by the end of the course you will have gained a better
comprehension of the economic decisions that pervade your personal lives, as well as
those faced by society at local, national and even global levels.
LEARNING GOALS
Upon completion of this course, a student should be able to
• understand how key economic variables like gross domestic product, inflation and
unemployment are measured;
• discuss how fiscal policy affects consumption, investment and, more generally,
macroeconomic outcomes;
• evaluate how monetary policy influences the general price level and inflation, as
well as other macroeconomic variables;
• identify the major drivers of long run economic growth;
• show enough proficiency in the use of formal macroeconomic theory, including the
aggregate demand and supply model, Keynesian multipliers, neo-classical growth
theory, etc.
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TIME AND LOCATION
Lectures: Monday and Wednesday, 3:30 – 4:50 (section 1) and 5:00 – 6:20 (section 2)
• up to January 31: [Link] (passcode: ec20spring)
• after January 31: Pollack 001
Recitations: Tuesday, 6:30 - 8:20 PM
• up to January 31: [Link]
• after January 31: Schwartz 112
Class attendance is not mandatory. However, be mindful that your preparation and study
will mostly build on the lecture notes you take. Some of the material covered in class may
not be in the textbook and you are bound to perform very poorly if you skip lectures. This
will be an in-person class and lecture recordings will not be available unless you are
undergoing quarantine for COVID-related reasons or facing other medically documented
conditions that prevent your presence, in which case I must be notified in advance.
CONTACT INFO
Instructor: Professor Nelson Sá
Office: Lemberg Academic Center, 161
Email: nesa@[Link]
Office Hours: Mondays, 2:00 – 3:15 PM (in Office)
Tuesdays, 3:45 – 5:15 PM (in Office)
Wednesdays, 2:00 – 3:15 PM (in Office)
Fridays, 1:00 – 2:00 PM (in Zoom, Meeting ID: 915 9414 6995)
or by appointment
Teaching Assistants: Ada de la Fuente-Akersveen (adelafuente19@[Link])
Aranjinsuren Enkhbat (aranjin@[Link])
Huan Tian (huantian@[Link])
Ian Smith (smithi@[Link])
COURSE WEB PAGE
The material for the class will be posted on LATTE: [Link]
Any schedule changes will be announced by email.
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TEXTBOOK
Case, Fair, and Oster (2020), Principles of Macroeconomics, 13th Edition, Pearson.
The textbook is optional, serving as one additional resource to clear out any doubts arising
out of lectures. Older versions are suitable as well. No problems will be assigned from the
book. Additional readings will be posted as needed (all readings are required). I also
encourage you to regularly read publications on current economic activity, such as the
Wall Street Journal, the Financial Times or the Economist.
PREREQUISITES
ECON 2A with a B+ grade or higher or ECON 10A. May not be taken for credit by students
concurrently with or after they have taken ECON 82B. Competence in high school algebra
and geometry (graphing, linear equations) is expected, along with a willingness to work
hard.
GRADING SCHEME
Post Lecture Short Quizzes 10%
Problem Sets: 15%
Two Midterms: 25% each
Final Exam (cumulative): 25%
Please read the following additional instructions carefully:
1. There are no makeup exams, but you may drop the lowest midterm grade. If you drop
one midterm, the final exam will count for 50% of the grade. Whichever grading scheme
gives you the highest grade will be automatically used by the end of the semester.
2. Your lowest problem set grade will be dropped. Clarification may be provided for
questions, but you should first try answering problem set questions on your own or with
your colleagues. You can submit your assignment up to 72 hours (three days) past the
deadline, but subject to the following grade penalties:
• up to 24 hours late: – 10%
• up to 48 hours late: – 20%
• up to 72 hours late: – 30%
No late problem sets are accepted past this point.
3. Check LATTE regularly to confirm that you have appropriately received credit for your
problem sets.
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4. Your lowest short quiz grade will be dropped. You will have 72 hours (three days) to
complete each short quiz consisting of five multiple choice questions. No late quizzes
will be accepted past this point.
5. Academic dishonesty is not tolerated. Please consult Brandeis University Rights and
Responsibilities for all policies and procedures related to academic integrity.
Allegations of academic dishonesty will be forwarded to the Director of Academic
Integrity. Sanctions for academic dishonesty can include failing grades and/or
suspension from the university.
6. Course grades are not negotiable. It is inappropriate to request special consideration
at the end of the term with respect to your grade.
7. Success in this four-credit course is based on the expectation that students will spend
a minimum of nine hours of study time per week in preparation for class (readings,
discussion sections, assignments, preparation for exams, etc.)
8. If you are a student with a documented disability on record at Brandeis University and
wish to have a reasonable accommodation made for you in this class, please discuss
this with me well in advance of any examination.
EXTRA CREDIT
You can earn up to two extra points in your course average by submitting a short comedy
sketch video by the last day of class, May 2nd. Here are the guidelines:
• the video cannot exceed 2 minutes.
• the video must illustrate one of the macroeconomic concepts we discussed in class.
• the video must elicit a smile (if not outright laughter).
• you can work in teams of up to three students.
You automatically receive one point for your submission. The class will subsequently vote
on which videos deserve one added point. If at least one half of the voting class deems
your video worth it, you receive a second point.
Illustrations of videos will be provided throughout the semester.
LETTER GRADES
Individual assignment and test grades follow an absolute (i.e., not curved) scale. The end
of semester weighted average will then be evaluated using two scales, one curved and
the other absolute. Whichever gives you the highest grade will be used. The scales are
defined as follows:
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Curved Scale Thresholds Absolute Scale Thresholds
Letter Grade Weighted Average Rank Weighted Average Score
A top 30% 85
A- top 40% 80
B+ top 60% 70
B top 70% 60
B- top 75% 55
C+ top 80% 45
C top 85% 35
C- top 90% 30
D top 95% 20
E/F bottom 5% < 20
For example, if your weighted average of assignments, short quizzes, midterms, and final
exam amounts to 75 points and this is within the top 65% of the class, the absolute scale
will be more favorable (B+ vs B). Your final grade will then be a B+. Suppose now that
your weighted average is 80 points and this places you within the top 25% of the class.
The curved scale will now be more advantageous and you will receive an A.
Failing is very uncommon and usually it only occurs if you regularly fail to hand in
assignments, show almost no work in tests (for instance, scores consistently less than
10%) or if you cheat.
If you are performing less well, you should set an appointment with me to discuss
ways to improve your results. The sooner you do this, the better. In many cases,
the problem does not just hinge on the number of hours you devote to the class,
but rather on flawed study methods you may be relying on. I am ready to work with
you to correct this.
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COURSE SCHEDULE
I. Introduction
1. The Scope and Method of Economics (Chapter 1)
II. Concepts and Problems in Macroeconomics
1. Introduction to Macroeconomics (Chapter 5)
2. Measuring National Output and National Income (Chapter 6)
3. Unemployment, Inflation, and Long-Run Growth (Chapter 7)
III. The Core of Macroeconomic Theory
1. Aggregate Expenditure and Equilibrium Output (Chapter 8)
2. The Government and Fiscal Policy (Chapters 9 and 14)
3. Money, the Federal Reserve, and the Interest Rate (Chapter 10)
4. Aggregate Demand, Aggregate Supply, and Price Level (Chapters 11 and 12)
5. The Labor Market in the Macroeconomy (Chapter 13)
IV. The World Economy
1. Open-Economy: The Balance of Payments and Exchange Rates (Chapter 19)
V. Further Macroeconomics Issues
1. Long-Run Growth (Chapter 16)
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MIDTERMS AND PROBLEM SETS SCHEDULE *
January 24 PS 1 Posted
February 7 PS 1 Due
PS 2 Posted
February 14 PS 2 Due
PS 3 Posted
March 2 PS 3 Due
PS 4 Posted
March 8 ** First Midterm
March 21 PS 4 Due
PS 5 Posted
March 30 PS 5 Due
PS 6 Posted
April 5 ** Second Midterm
April 13 PS 6 Due
PS 7 Posted
May 2 PS 7 Due
Classes End
TBA Final Exam
* this schedule is tentative and may be subject to adjustments as the semester progresses.
** midterms will be held during the recitation period, taking place between 6:30 and 8:20 PM.