HKUST Business School - Department of Economics

ECON2123 - Macroeconomics (Fall 2023)

Course Outline

L3: Mo 03:00PM - 04:20PM & Fr 10:30AM - 11:50AM (Rm 1011, LSK

Bldg)
Lecture Time: L4: We & Fr 03:00PM - 04:20PM (Rm 1014, LSK Bldg)
L5: Mo & We 10:30AM - 11:50AM (Rm 5583, Lift 29-30)
L6: We & Fr 04:30PM - 05:50PM (Rm 1014, LSK Bldg)
Course Website: https://canvas.ust.hk/courses/52676

Instructor: Wenwen ZHANG

Office: Room 6084, LSK Bldg
Email: [email protected]
Office Hours: By appointment

TSUI Peter (L3 & 4) [email protected]

Teaching Assistant:
LAU Teresa (L5 & 6) [email protected]
Office: Room 6066, LSK Bldg
TSUI Peter: Fr 02:00PM – 3:30PM
Office Hours:
LAU Teresa: Tu 04:00PM – 05:00PM

Course Description:
This course provides an introduction to macroeconomic theory and policy analysis. The first part of
the course explores how GDP, inflation, unemployment, and other macroeconomic aggregates
are measured in practice. “Equilibrium” among these variables in different markets will be
studied in the short, the medium, and the long run. Goods and money markets are identified by
IS-LM model in the short run. In the medium run, we move to the labor market. In the long run,
we develop analytical models of macroeconomic performance and growth. Such a theoretical
framework will allow us to study the impacts of fiscal and monetary policies on the economy.
Last part focuses on open macroeconomic issues.
I will use real world examples and cases as much as possible in order to enhance your
understanding of course materials. Eventually, I would like all of you to come up with your own
“definition” or “meaning” of economics and establish its applicability in your daily life.

Main Textbook:
Olivier Blanchard, Macroeconomics, 8th edition (2021), Pearson Education Inc.
Some of the Chapters will be adopted from Olivier Blanchard, Macroeconomics, 6th edition.

Learning Outcome – School Intended Learning Outcomes (“SILOs”):

Upon successful completion of this course, you should be able to:
1) Identify important macroeconomic variables and understand their relationships; (Goal 3)
2) Gather and organize the relevant macroeconomic information for a given context; (Goal 1)
3) Apply tools learnt in class to analyse some historical and current macroeconomic events.
(Goal 3)
4) Understand the operation of open economy and exchange rate related topics. (Goal 4)

Hopefully, you can also

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 5) Discuss the consequences of a macroeconomic shock or a policy shock; (Goal 3)
6) Develop an appreciation for macroeconomics and a desire to continue further study. (Goal
4)

For the details of SILOs, please refer to:

http://undergrad.bm.ust.hk/academics/academic-programs/learning-outcomes

Course Format / Teaching Approach:

This course is delivered through lectures and tutorials. Students attend two 80-minute lectures
per week. iPRS will be used during lectures to encourage class participation and sharing among
students and with me. Please try to attend all lectures and participate actively in discussions.
Tutorials will be given on a weekly basis. (https://registry.hkust.edu.hk/calendar_dates/dates23-
24confirmed.pdf).

Teaching & Learning

Roles in the Course SILO Addressed
Activities
Explain key concepts and their
applications; Cases and examples to
Lectures 1,2,3,4
build student’s critical and analytical
ability
Encourage class participation, critical
iPRS 1,2,3,4
thinking and discussion
Review and further illustration on
important topics, practice problem-
Tutorials 1,2,3,4
solving, encourage discussion and
participation
Enhance understanding of course
Problem Sets materials and their application 1,2,3,4
through practice

Course Outline:
I. Introduction (Chapter 1&2)
II. Economy in the short run
1. The Goods Market (Chapter 3)
2. Financial Markets I (Chapter 4)
3. Goods and Financial Markets: The IS-LM model (Chapter 5)
III. Economy in the medium run
1. The Labor Market (Chapter 7)
2. Putting All Markets together (Chapter 7(6thE))
IV. Open Economy
1. Openness in Goods and Financial Markets (Chapter 17)
2. The Goods Market in an Open Economy (Chapter 18)
3. Output, the Interest Rate, and the Exchange Rate (Chapter 19)
4. Exchange Rate Regime (Chapter 20*)
V. Economic Growth
1. Facts of Growth (Chapter 10*)
2. Saving, Capital Accumulation, and Output (Chapter 11*)
3. Technological Progress and Growth (Chapter 12*)

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Examinations and Grades:
Quizzes and Problem sets:
• You will be assigned 5 quizzes and 3 problem sets during the semester. Quizzes (MCQs only)
are assigned on a biweekly basis and submitted on the canvas. Each quiz remains active on
the canvas for one week. By default, only one attempt is allowed. Quizzes are credited by
submissions.
• Soft copy of the problem sets must be uploaded on canvas before the deadline announced.
Suggested answers with detailed explanation will be posted on the Course Website after
the deadline of each problem set. Problem sets are credited by submissions and will be
randomly checked if irrelevant files are submitted.
• Please note that NO late submissions will be accepted. In case you are sick and cannot
submit Problem sets on time, please email TA before the due time with a valid medical or
legal document attached. As a result, the completed homework should be uploaded on
canvas no later than the first tutorial following the due date.

Midterm and Final Exams:

• There will be Two midterm exams. The midterm exam will cover lecture materials, problem
sets and assigned reading (if any). Midterms dates are expected to be announced soon.
• The final exam is CUMULATIVE. It may contain multiple-choice, true & false questions and
essay-type questions, which require explanation in writing, graph and calculation.

Absence from Midterm and Final Exam:

• If for any reason you are unable to attend the midterm or final exam, you must seek
approval of absence from me directly BEFORE the exam. Your request should be supported
by valid documents, such as medical certificate issued by a registered medical practitioner.
Absence from an exam without prior approval of absence would result in ZERO score.
• There will be NO makeup for any Midterm exams. If you miss both midterm exams for any
reasons, you will receive ZERO for your midterm exams.
• For students who are absent from the final exam with prior approval, a make-up exam will
be arranged. Make-up exam will be scheduled as soon as possible and should be within
one week after the official final exam date (to be announced). It is the responsibility for
those who request for a make-up exam to ensure their availability. The make-up
arrangement can be in the form of written-exam, oral exam or research paper, etc. Please
NOTE that the instructor has the final discretion on all arrangements of the make-up exam.
Students who request for the make-up final exam should comply with all the requirements
as communicated by the instructor. Failing to meet any requirement may result in a ZERO
score.

Overall Score of Grading for the Course:

Your overall score for the course will be computed according to one of the following two schemes,
whichever yields the higher score. This means that a low score in a midterm exam will not lower
your course grade, and it always makes sense to take both midterm exams. As you can see, a good
score can raise your grade, but a low score will not lower it.

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Scheme (1): Course score with TWO midterms
Assessment Activities Weighting
Problem Sets 10%
Quizzes 5%
Midterm Exam ((1) and (2)) 20%+20%
Final exam (cumulative) 45%

Scheme (2): Course score with ONE midterm

Assessment Activities Weighting
Problem Sets 10%
Quizzes 5%
Midterm Exam ((1) or (2), the higher one) 35%
Final exam (cumulative) 50%

(Note: Scheme (1) is enforced if any midterm is missed without my prior permission. Scheme (2) is
enforced if any midterm is missed with my prior permission.)

Academic Honesty and Integrity:

Academic integrity and honesty are key values at HKUST. Please read the information on
academic integrity carefully. It is your responsibility to be familiarized with the Academic Honor
Code and the content on the Academic Integrity website
(https://registry.hkust.edu.hk/resource-library/academic-integrity). The Code will be STRICTLY
enforced. I will report any cases to the University WITHOUT EXCEPTIONS.

I will try my best to make the course requirements as clear as possible. When you have any
question or you encounter any difficulties in studying, please do not hesitate to consult me
either in or out of class throughout the semester. I am delighted to help you succeed in the
course. Please be aware that ultimately it is you EARNING the grade, not me GIVING you the
grade. So, when the grade is out, one thing I will NOT do is to change your grade if what you
want (need) is different from what you get.

Class Etiquette:
• You are expected to be punctual for both lectures and tutorials; I will start and end the
lecture meetings on time.
• You are welcome to bring your laptop or other devices to lectures for learning purposes.
• Respect the others in class and do not disturb others with side conversation, Internet
surfing, emails-checking or instant-messaging during class time.
• No eating in class at any time.