Macroeconomics (Fall 2025)

Acknowledgment: This syllabus was co-developed with Maria Teresa Sarmiento-Villena.

  • Class Meetings: Tue 9–10:30am, Thu 9–10:30am in BRB
  • Instructor: Yumin Hong (contact:ymhong@utexas.edu)
  • Office Hours: Tue 10:30–12:00pm in BRB 3.150

Course Summary

This course provides an introduction to the analytical tools used in modern macroeconomics. We will examine the factors that influence economic growth, consumption, investment, and real business cycles. We will also analyze and discuss the challenges of implementing fiscal and monetary policies, connecting the theory learned from lectures with the actual difficulties faced by policymakers.

  • Prerequisites: Linear Algebra, Calculus, Microeconomics
  • Readings: No particular textbook. Review Lecture Notes Table
  • Mode of Instruction: In-person lectures. Regular attendance is expected.

Assignments and Grading

  • Participation — 20%
  • Group Work Activities / Laboratory / Problem Sets — 20%
  • Midterm — 30%
  • Final Exam (cumulative) — 30%

Grading Scale:
A: 94–100; A-: 90–93.9
B+: 88–89.9; B: 83–87.9; B-: 80–82.9
C+: 78–79.9; C: 73–77.9; C-: 70–72.9
D+: 68–69.9; D: 63–67.9; D-: 60–63.9
F: < 60

Participation

Attending class is necessary. Full 20% credit earned via one of the following five pathways (choose by Midterm 1, may switch once before Final):

  • Path A – Reverse + Regular OHs: One 20-min reverse OH (you pick time & place), plus two regular OH visits.
  • Path B – In-class Surveys: Complete 18 surveys.
  • Path C – Peer Teaching: Two mini peer-teaching sessions (5–7 min) with Canvas outline.
  • Path D – Assessment Co-designer: Submit MC & short-answer items (8+2 total across midterms).
  • Path E – Multimedia Explainers: Two plain-language explainers with diagram + 90s audio/video walkthroughs.

Group Activities and Laboratory Projects

  • Groups of 4, developing projects throughout the course.
  • Pre-exam review classes are peer-led.
  • Group membership can change with mutual consent.

Problem Sets

  • 3 problem sets before midterm, 1 after.
  • Collaborative work allowed, but submissions are individual.

Exams

  • Classes before exams used for review.
  • Midterm: Week 10
  • Final: Week 16

Weekly Schedule with Topics

Week Topic Key Questions Activities References
1 Introduction; Solow model Why do countries grow at different speeds? — Romer, Advanced Macroeconomics; Mankiw
2 Solow model Effect of ↑ savings rate on growth? PS1 Romer (1990); Barro & Sala-i-Martin (2004)
3 Endogenous Growth How does tech progress shape growth? — Romer (1990); Barro & Sala-i-Martin
4 Cross-country Income Differences Key drivers of differences? G: Data project (WDI) Barro & Sala-i-Martin
5 PIH Model Do households consume/save more with income changes? L: HARK Lab Friedman (1957); Hall (1978); Deaton (1992); Campbell & Mankiw (1989)
6 Theory vs Data (PIH) Does evidence corroborate PIH? G: Meta-analysis —
7 Labor Markets & Unemployment Why smooth participation but volatile unemployment? Market failure? PS2 Nobel lecture “Markets with Search Frictions” (2010)
8 Investment Why is investment more volatile? — Bernanke, Gertler & Gilchrist (1999)
9 Real Business Cycles Why boom & busts? PS3 Romer
10 Midterm Review + Midterm — G: Peer review —
11 RBC & Policy Should policy stabilize cycles? L: Dynare/DSGE RBC Romer
11 New Keynesian Model Why sticky prices matter? PS4 Galí (2015)
12 New Keynesian Model Role of monetary policy? Monetary neutrality? L: Dynare NK model Galí
13 Monetary Policy Challenges What trade-offs do central bankers face? — Galí
14 — Thanksgiving — —
15 Fiscal Policy Challenges Is gov’t spending useful in slumps? — Woodford (2011)
16 Final Review + Exam — G: Peer review —

Conduct, Integrity, Accessibility

  • Devices: Only for class purposes; prohibited during exams.
  • Academic Integrity: Collaboration allowed on problem sets (with attribution, incl. AI/chatbots). Exams are closed-book. University integrity policies apply.
  • Accessibility: Contact instructor or Student Disability Services for accommodations.
  • Grade Appeals: Written appeal within 24h of return; entire assignment may be regraded.