UNIVERSITAS INDONESIA

FAKULTAS EKONOMI & BISNIS

DEPARTEMEN ILMU EKONOMI
PROGRAM STUDI S-1 REGULER

SYLLABUS
MACROECONOMICS 1
Even Semester 2016/2017

No. Lecturers Assistants

Maddaremmeng A.Panennungi
Eldo Malba Simanjuntak
1 (Koord.)
2 Tjhjanto Budisatrio / Rima Prama Artha Ahmad Fahriza
3 Sartika Djamaluddin Alvin Ulido
4 M. Shauqie Azar (Bhs. Inggris) Teuku M. Riefky Hasan
5 Nanda Nurridzki Goldy Fariz Dharmawan
6 Dhaniel Ilyas (Bhs. Inggris) M. Alvin Prabowosunu
7 Maria Agriva Filza Amalia
8 Ninasapti Triaswati / Dewi Meisari Goldy Fariz Dharmawan
9 Niniek L. Gyat Estiana Cahyawati
10 Widyanti Soetjipto Luh Putu Ratih K. D.

Subject Code ECEU600201

Subject Title MACROECONOMICS 1
Credit Value 3
Year/Semester I/2
Subject Type Compulsory (Faculty)
Pre-requisite/ Pre-requisite: Introductory Macroeconomics (Principles of Economics Part 2)
Co-requisite/
Exclusion
Role and Purposes This subject aims to provide an understanding of development in Macroeconomics
theory and issues. The main topics covered in this subjects are: macroeconomic
indicators, the fundamental of aggregate supply and demand-both in the closed
economy and open economy. In addition, it also introduces growth theories, a wide
range of applications and various macroeconomic policies in the context of the
Indonesian economy. The learning methods used are active learning. Discussion on the
materials use approaches of quantitative and graphical analysis, and also using
empirical case studies.
Subject Learning Objectives of the Subject :
Outcomes 1. Hard Skills (related to increased cognitive ability)
2. Explain main indicators and data of macroeconomics; GDP, inflation, and
unemployment - (C2, A2).
3. Explain classical macroeconomic theory: national income - (C2, A2).
4. Explain classical macroeconomic theory: money and inflation - (C2, A2).
5. Apply short-run business cycle theory on goods and money market, aggregate
demand and aggregate supply in both close and open economy - (C3, A3).
6. Apply the aggregate supply model – (C3, A3).
7. Apply growth theory in macroeconomics - (C3, A3).
8. Apply long run macroeconomic theory in open economy - (C3, A3).
9. Apply long run macroeconomic theory in open economy for unemployment issue -
(C3, A3).
10. Apply consumption theories in macroeconomics -(C3, A3).
11. Apply investment theories in macroeconomics -(C3, A3).
12. Discuss issues and debate in macroeconomic policies -(C3, A3).

Soft Skills (related to personality development)

i) Developing qualitative analytical skill
ii) Development of presentation skills / public speaking
iii) The development of group collaboration skills
iv) There Developing confidence / morbidly

AACSB Learning Goal (LG) and Learning Objective (LO)

GENERAL KNOWLEDGE OF 6.1. Demonstrate 6.1.4. Explain the

ECONOMICS: Students knowledge in theories different types of
understand economics of Economics macroeconomic
concept theories

6.1.5. Apply
mathematical
approach to explain
macroeconomics issues

Subject Synopsis/ This syllabus integrates the macroeconomics under the long run, the very long run, and
Indicative Syllabus the short run condition. However, the flow of the material is set based on the following
order: (1) long run, (2) short run, and (3) very long run. In addition, there is also
additional parts that concerns on microeconomic foundation of the consumption and
investment; macroeconomic policy debates on stabilization and government’s debt; and
latest development the financial crisis and the rise of the “new macroeconomic
theories”. In each session, lecturer will encourage the students to understand both of
the theory and the empirics of the topics.

Weeks
Topics Material Reference

Introduction:  Economic Model,

Understanding Macroeconomics, and how
1 M:1, 2
what is this syllabus proceeds it
macroeconomics,  Introducing differences of
 macroeconomic economy under long run,
indicators and short run, and very long run
their data assumption
measurements  Measurement of the
Economic Activities in Gross
D:1, 2
Domestic Product (Economic
Growth)
 Measurement of Changes of
the Living Costs in Price Index
(Inflation)
 Measurement of Joblessness
in Unemployment Rate
 Production (Supply of Goods
and Services): Production
Function, What Determines
the Production and How the
Production Distributed
 Expenditure (Demand of
The Economy in Goods and Services): What
2 the Long Run: Determines the Demand for M:3
National Income Goods and Services
 Market for Goods and
Services: Supply and Demand
for Goods and Services
 Market for Financial Markets:
Supply and Demand for
Loanable Fund
 Definition of Money
 What is the Quantity Theory
of Money
The Economy in
the Long Run:  Seigniorage and the
3 Government Behavior M:4,5
Money and
Inflation  Inflation and Interest Rates
 Demand for Money
 Inflation, Hyperinflation, and
Their Social Costs
 International Movement of
Goods&Services and Capital
The Economy in M: 6
 Saving and Investment Under
4 the Long Run: D:7,13-16
Small Open Economy
Open Economy  Exchange Rates

 Natural Rate of
M: 7
Unemployment
The Economy in
5 the Long Run:  Frictional Unemployment D:7,13-16
Unemployment
 Real Wage Rigidity and
Structural Unemployment
  Introduction to the Business
Cycle
6  Goods&Services Market and M:10-11
Money Market: Building the
The Economy in IS-LM Model
the Short Run: IS-  Application of the IS-LM:
LM and AD-AS Monetary Policy, Fiscal Policy,
under Closed and Trade Policy
Economy  IS-LM as Theory of Aggregate
7 Assumption Demand (AD) M:12
 Aggregate Demand (AD) and
Aggregate Supply (AS): The
Short Run vs The Long Run
Equilibrium
UTS
The Economy in
the Short Run: IS-  Small Open Economy and the
LM and AD-AS Exchange Rate Regime: The
8 M: 13
under Open Mundell-Fleming
Economy
Assumption
 The Models of Aggregate
The Economy in
Supply
the Short Run:
9  Phillips Curve: the Short-Run M: 14
Theory of
Tradeoff Between Inflation
Aggregate Supply
and Unemployment
 Economic Growth Part 1:
Capital Accumulation, Savings
and Population Growth M:8,9
(Solow Model)

 Economic Growth Part 2:

Including Technological
Changes (Solow Model) and
The Economy in the Solow Growth Accounting
the Very Long
10, 11
Run: Economic  Beyond Solow Model:
Growth Introducing Endogenous
Growth Theory and Advances D:3, 4
in Business Cycle Theory

 Empirics of Economic Growth

and Several Key Issues in
Economic Growth (Inclusive
Growth and Sustainable
Growth)
 Keynes’ Consumption
Consumption M: 16
12 Function
Theory
 Fisher’s Intertemporal Choice
  Mogdigliani’s Life-Cycle (17.1, 17.3,
Hypothesis 17.4, 17.5)
 Friedman’s Permanent
Income
 Hall’s Random-Walk
Hypothesis
 Laibson’s the Pull of Instant
Gratification
 Business Fixed Investment,
Investment Residential Investment,
Theory and And Inventory Investment M: 18, 19
13
Macroeconomic  Stabilization Policy and D: 11, 17
Policy Debates Government’s Debt

 What does the financial

system do?
TBD
Financial Crisis  The Global Financial Crises
14  Behavioral Macroeconomics

UAS

Teaching/Learning Teaching method uses active lecturing and class discussions, in which students achieve
Methodology the study objectives by discussing and completing related problems or cases under the
guidance of lecturer and tutor. The problems and cases are taken from the textbook and
other sources.

Participation:
Individually, each student is required to participate actively in teaching and learning, in
the form:
1. Ask questions in accordance with the topic.
2. Prepare yourself to answer questions.
3. Discuss issues related to the topic.
To be eligible, students must read the textbooks and other materials provided.

Attendance:
Minimum 80% of Total Lecture:
1. A maximum of 3 (three) times absent, for no reason.
2. Students who came 15 minutes after class begins is considered not present.

Assessment SIANSI (AACSB)

Method in Description SIAK NG
Traits 1 Traits 2
Alignment with Mid Examination 30% 50% 50%
Intended Learning
Outcomes Final Examination 30% 50% 50%
 Group and Individual 30%
Assessments
Tutorial 10%

Total 100 100 100

Details of learning The specific learning methods used in this subject are:
methods 1. Class Discussion
2. Lecturing
3. Learning Cooperation (collaborative learning)

Schedule of
Assistance or Lab Tutorials will be held 10 times in this semester. Tutor will give assignments, homework
(similar to the and quizzes that its weight has been determined at the previous point.
schedule of
teaching faculty)
Student Study
Effort Expected Class contacts:
Lectures 20 Hours
Tutor 20 Hours
Collaborative Learning 10 Hours
Presentation 5 Hours
Other student study effort outside the class:
Preparation for assignment/tests 10 Hours

Reading List and Required Readings:

References 1. Mankiw, N.Gregory. 2012. Macroeconomics, 8th Ed. New York: Worth
Publishers (M).
2. Dornbusch, Rudiger, Stanley Fischer, dan Richard Startz. 2010. Macroeconomics,
11th Ed. New York: McGraw-Hill Irwin (D).

Plagiarism Students should maintain originality and respect intellectual property rights. Therefore,
students should avoid conducting any act of plagiarism when doing written assignments
(if any), which may take a form of short individual / group paper and / or summary.

The followings are acts of plagiarism:

 Copying paragraphs, sentences, a single sentence, or even a significant part of a
sentence directly without enclosing them in quotation marks and appropriately
footnoted;
 Using and / or developing other’s ideas found in printed materials or film
elsewhere without explicitly referencing them to the respective author or the
source of the idea.

Plagiarism is a serious infringement of intellectual property rights. Any assignment that

contains presumed plagiarism will be marked 0 (zero).

Since students are required to write group papers, students should sign a Statement of
Authorship and attach it to their papers before paper submission. The form of
Statement of Authorship is available at the Resource Center of the Program. Lecturer(s)
and / or tutor(s) will refuse to mark any paper that has no signed Statement of
Authorship attached.

In addition, students should ask for cover sheet from the Resource Center of the
Program for any assignment submitted.

Sanction for plagiarism :

 First time: paper will be grade F
 Second time: final grade for the specific course will be grade F
 Third time: expelled from Department of Economics FEB UI
 Rubric for Problems

Example: The following equations describe an economy.

𝑌 =𝐶+𝐼+𝐺
𝐶 = 120 + 0.5(𝑌 − 𝑇)
𝐼 = 100 − 10𝑟
𝐺 = 50
𝑇 = 40
𝑀 𝑑
( ) = 𝑌 − 20𝑟
𝑃
𝑀 = 600
𝑃=2
a) Identify each of the variables and briefly explain their meaning.
b) From the above list, use the relevant set of equations to derive the IS curve. Graph the IS
curve on an appropriately labeled graph.
c) From the above list, use the relevant set of equations to derive the LM curve. Graph the LM
curve on the same graph you used in part (b).
d) What are the equilibrium level of income and equilibrium interest rate?
Criteria
Unsatisfactory/ Exemplary/
Satisfactory/ Successful
Traits Unacceptable Distinguished
(2)
(1) (3)
LG: Basic Competence / LO 1: Apply technical competence in basic economics
Cannot explain the Fairly explain the Able to explain the
(T1) Explain the different different types of different types of different types of
types of macroeconomic macroeconomic theories. macroeconomic macroeconomic theories
theories.
theories. comprehensively.
LG: Basic Competence / LO 3: Apply basic quantitative methods by using appropriate tools
Cannot apply Fairly apply Able to apply
(T2) Apply mathematical
mathematical approach to mathematical approach mathematical approach
approach to explain
explain macroeconomics to explain to explain
macroeconomics issues
issues macroeconomics issues macroeconomics issues