Skip Navigation
UT wordmark
College of Liberal Arts wordmark
economics masthead
Jason Abrevaya, Chair 2225 Speedway, Stop C3100, Austin, TX 78712 • 512-471-3211

Fall 2003

ECO 320L • MACROECONOMIC THEORY

Unique Days Time Location Instructor
29920 MWF
9:00 AM-10:00 AM
WAG 420
DACY

Course Description

This course is about national income, its growth and fluctuations. It begins with a discussion of national income accounting and measurement of the general price level. There follows an extensive and technical description of the standard growth model and its extensions to represent the long run. A typical question pertaining to this topic is "Why do some nations grow faster than others?" Arguably, growth theory can be considered the most important topic in macreconomics and, definitely, it is less controversial than the theories that deal with economic fluctuations over the short and inter-mediate runs. Understanding why there is controversy is the main goal of this course. Answers to macroeconomic questions are treated with less emphasis than how those answers are derived. Accordingly the course could be called, "A Course in Macroeconomic Reasoning." The instructor develops his own open-economy model to deal with short and intermediate fluctuations in the economy. This model is an extension of the IS-LM framework to include a production sector and an international trade and finance sector. The model is useful in explaining the economic effects of the attack on the Twin Towers and the monetary policies of the Federal Reserve and the fiscal policies of the federal government. However, it is hoped that students who understand the model will be able to use it to explain many economic questions that arise in ordinary discourse. While there is a textbook in the course, emphasis will be placed on classroom lectures.

back

bottom border