Korea University International Winter Campus (KU IWC) 2020∼2021

Choose Your Winter in Seoul - one of the most exciting cities in the world
December 28, 2020 ∼ January 15, 2021

IWC203 - Introduction to Macroeconomics

NOTE: Due to the ongoing COVID19 pandemic, this course will be offered as a real-time
online lecture as well as in person lecture (for on-site IWC participants).
Ⅰ. Instructor
Professor : Dr Dirk Bethmann
E-mail : dirk@korea.ac.kr
Home Institution : Korea University
Office : Woodang Hall 516
Office Hours : By appointment

Ⅱ. Textbook
N. Gregory Mankiw, Principles of Economics 7th Edition, Cengage
Required Textbook : Learning, 2015
Students are advised to purchase the textbook prior to the start of IWC.
Recommended
Students are encouraged to cross-read, however no additional text is
Additional :
explicitly recommended.
Readings

Ⅲ. Course Description and Objectives

Economic theory consists of microeconomics and macroeconomics. The course
‘Introduction to Macroeconomics’ introduces to you the field of macroeconomics which
considers economies as a whole. Typical questions in macroeconomics include how can
short-run fluctuations be minimized or how can long-run economic growth be sustained.
During the course of the semester we will cover topics such as the measurement of national
income, economic growth, unemployment, inflation, money, international trade and
exchange rates, short-run fluctuations, the effectiveness of monetary and fiscal policy, and
the Phillips curve.

At the end of this course, we should have a general understanding of macroeconomic

phenomena and theory. We should be able to have a general understanding of the unique
perspective taken by macroeconomists in their study of society and human behavior. Also,
we should be able to understand the methods used by macroeconomists and how they are
applied to everyday decisions.
Ⅳ. Grading
Midterm Exam : 40%
Final Exam : 40%
Group Project : 20%

V. Mid Semester Examination / Final Examination

Both examinations consist of short answer questions. The mid semester examination covers
material from the first half of our course. The final examination covers the second half.

VI. Group Project

Besides the two examinations, the final grade will be based on a group project. Groups of students
will be self-selected and should be formed by the fourth day of our course. The ideal group size is
three students, the minimum size is two students, the maximum four students. In case of difficulties
forming groups, the instructor will assist. The goal of the group project is to produce a 15min
presentation video file about a lecture-related topic (the presentation topics require the instructors
approval).

VII. Class Outline

Date Topic Chapter Remarks
Dec 28 (Mon) Prerequisites 1-6

Dec 29 (Tue) National Income; Cost of Living 23; 24

Dec 30 (Wed) Cost of Living; Production and Growth 24, 25

Dec 31 (Thu) Saving, Investment, and the Financial System 26

Jan 1 (Fri) New Year’s Day (National Holiday, No class)

Subject to changes

Jan 2 (Sat) The Basic Tools of Finance; Unemployment 27; 28

Jan 4 (Mon) Unemployment; The Monetary System 28; 29

Jan 5 (Tue) Midterm Examination

Jan 6 (Wed) Money Growth and Inflation 30

Jan 7 (Thu) Open Economy Macroeconomics: Basic Concepts 31

Open Economy Macroeconomics: Basic Concepts; A

Jan 8 (Fri) 31; 32
Macroeconomic Theory of the Open Economy
Aggregate Demand and Aggregate Supply; The Influence
Jan 11 (Mon) 33; 34
of Monetary and Fiscal Policy on Aggregate Demand
 The Influence of Monetary and Fiscal Policy on Aggregate
Jan 12 (Tue) Demand; The Short-Run Tradeoff between Inflation and 34; 35
Unemployment
Jan 13 (Wed) Six Debates over Macroeconomic Policy 36

Jan 14 (Thu) Final Examination

Jan 15 (Fri) Group Presentations / Course Review