Intermediate Macroeconomics
Spring 2022

Assoc. Prof. Chris Ball

Economics Department


Office phone: +1 203 582 8745

Office Location: 4th Floor Rocky Top Student Center

AS-AD and Other Review Topics

TYPED NOTES: Review of AS-AD Basic

A minor, side challenge throughout the semester will be to see at what point(s) we can think in terms of an AS-AD framework for the economy.

PART I: The Basic Island, Fundamental Concepts and Static Allocation

  • The basic island setup

    • Hand out on setup

  • Introduction, constraints, production and the 3 fundamental economic choices all societies must face: who does what, who gets what, and how do we handle aggregate shocks.

    • Hand out on constraints and basic accounting

    • Hand out on population, employment and unemployment

  • Fundamental insights about productivity and production.  ​Production Model 1: Linear production​, and Technology and Productivity

    • Hand out​

  • "Static Growth": Getting the most from what we've got.  Various means of allocating and arranging labor time. Comparative Advantage​

    • Hand out on thinking about "static growth"​

    • Hand out on first thoughts on transaction costs, property rights, and decentralized innovation (and knowledge)

    • Hand out(s) on Comparative Advantage​

    • AS-AD Challenge 1: Can we think in an AS-AD framework yet?

PART II: Dynamics and Allocation over Time

  • Fundamental issues in dynamic allocation

    • Hand out on two period models

  • Asset Prices​ as a framework for thinking of all dynamic decisions

    • Hand out on asset prices​

  • Technology as an asset price​

  • Capital as "tech" and as an asset price

  • AS-AD Challenge 2: Can we think in an AS-AD framework yet?

PART III: Dynamics, Capital Accumulation and the Solow Growth Model

  • Breaking K from A and Concave Production

  • Marginal Products of Capital and Labor

  • The Neo Classical Theory of Income Distribution

  • Choosing K over Time and The Solow Growth Model

  • Solow Model Basics

    • Hand out/Lecture Notes : Handwritten Class Notes on the Solow Model 

    • Videos on all this material are available (see right hand side of this site)

Evalutating the Solow Models in terms of GDP per Capita

PART IV: Money and Policy

  • Transaction Costs and Institutions

    • Lecture Notes: HO 05 Transaction Costs

Monetary Policy: An Evolutionary and Conceptual History of Money from Stones to 2021 FED Policy

Fiscal Policy

QU Course Number: EC 212

Days: Tuesdays and Thursdays

Time:  2:00 - 3:15 PM

Location:  TH 328

Office Hours: TBD and As Needed

Syllabus and Other Material

EC 212 Spring 2022 Syllabus: download

OPTIONAL textbook for the course:

  • Mankiw, Macroeconomics, 11th Edition by MacMillan Press

    • Standard macro textbook. Very good and well written.​

  • Garin-Lester-Sims, Intermediate Macroeconomics by Julio Garin, Robert Lester and Eric Sims.

    • Higher level macro textbook under development.​

    • A truly modern macro textbook that is really more of an "advanced undergraduate" macro book than an "intermediate" book.

    • The authors' site is here in case they update and the link I gave is bad.

Side Readings for Fun

(related to topics asked about in class)

Additional Reading


Modern FED Policy Framework

Early Trade Structures


The Economics of TIME


Friedrich Hayek's 1945 Classic (Optional)

Gary Becker's 1965 Classic (Optional)

  • "A Theory of the Allocation of Time," by Gary Becker, The Economic Journal. September 1965.

Additional Material for the More Analysis-Oriented Student




I recommend you watch them in order and SKIP "Evaluating Growth" videos at first. After you finish all the Solow Model stuff, you can return to them. I just organized them with each section so you can easily go back and check the videos when you look at the Evaluation Stuff.

Solow Model with Population Growth

Solow Model with Technological Progress

Evalutating the Solow Models in terms of GDP per Capita


Lecture Notes: Comparing Models


Evaluation Videos all in One Place (best if you download the "Comparing Models" Notes and go through these with those notes and AFTER we did it in class.)