UNIVERSITAS INDONESIA

FACULTY OF ECONOMICS AND BUSINESS

International Undergraduate Program

SYLLABUS
[ECON10201] INTERMEDIATE MACROECONOMICS
Odd Semester 2014/2015
Credit: 3
Prerequisite:
[ECON10100] Introductory Microeconomics,
[ECON10200] Introductory Macroeconomics

Lecturers:
M. Shauqie Azar, M.PP. [coordinator]
Institute for Economic and Social Research (LPEM)
auqie@yahoo.com
08161978963 (mobile)
(021)3143177 (office)

Tutors:
Dillon Zufri, SE.
dillon.zufri@gmail.com, 08567688493

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SUBJECT DESCRIPTION
This course aims to equip students with a more comprehensive and in-depth understanding
of the relationship among various macroeconomic variables and how macroeconomic policies
can be used to fine-tune the economy. At this intermediate level, the utilization of
mathematical approach is significantly higher than the introductory level. Hence, students
should have already possessed sufficient understanding of the basic macroeconomic
concepts and theories.
The course will cover the interaction of goods market and financial market in the short-run,
the addition of labor market to form the AS-AD model in the medium-run, the role of
economic growth in the long-run, the role of exchange rates in the open economy and the
role and the effectiveness of macroeconomic policies to fine-tune the economy.
Throughout the entire course, students will be required to do small exercises using real
macroeconomic data and information that they have to analyze. This will help students
understanding how the macroeconomic mechanism works and how sufficient understanding
on the real-life macroeconomic phenomenon and policies will help better decision making,
even for students who do not want to be economists.

SUBJECT OBJECTIVES
The objectives of the course are:
To help students developing their comprehensive understanding of the interrelationship
among various macroeconomic variables, the connection among various markets that
form both the aggregate demand and aggregate supply, and the macroeconomic
behavior in short-run, medium-run and long-run.
To help students understanding the effectiveness of macroeconomic policies and
instruments in fine-tuning the economy, both in closed and open economy.
To help students analyzing the real economic phenomenon and developing their
awareness on the benefit of understanding such real economic phenomenon for decisionmaking purposes, even for students who do not want to be economists.
In Term of cognitive skills, by studying this subject, the students will improve the ability:
To explain an argument logically, such as why the current account deficit sometimes does
not have to be the problem of the economy
To analyze and synthesize different ideas and theories, such as how differences in the price
assumption explains differences among macroeconomic theories.
To apply theories to the real world, such as student should have the capability in using the
circular flow to measure GDP both in the concepts and in the Indonesia data.
In addition, the students will improve (put only the ones related):
technical skills
analytical skills

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Generic Skills to be Developed

Evaluation of ideas, views, and evidence
Synthesis of ideas, views, and evidence
Strategic thinking
Critical thinking
Application of theory to policy
Assessment of data and other information
Summary and interpretation of information
Application of office software
Statistical reasoning
Problem solving skills
Collaborative learning and teamwork
Negotiation and bargaining
Written communication
Oral communication
Case analysis

Low

Intensity Level
Moderate

High

SUBJECT MATERIALS
Main references:
(1) Mankiw, N. Gregory [MKW], Macroeconomics, Seven Edition, Worth Publishers, 2007
(2) Blanchard, Olivier, [BLC], Macroeconomics, Fourth Edition, Prentice Hall, 2006
(3) Dornbush, Rudiger, Fischer, S [DF], Macroeconomics, Ninth Edition, McGraw Hill, 2004
Additional Sources/Data [AS/AD]:
Badan Pusat Statistik (BPS), www.bps.go.id
Bank Indonesia (BI), www.bi.go.id
IMF, International Financial Statistics (IFS), which can be accessed through PDEBFEUI or www.imf.org
World Bank, World Development Indicators (WDI), www.worldbank.org

ASSESSMENT
Final grade consists of:
a. Quizzes & Homework
b. Papers & Discussion
c. Mid-term exam
d. Final exam

20%
20%
30%
30%
100%

CLASSROOM ORGANIZATION

one 150 minutes lecturer per week (total 14 weeks)

one 150 minutes tutorial per week (total 12 weeks)
quizzes will be conducted anytime

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Examination:
o Midterm exam will be closed book, consists of 5 essay questions comprises the topics
from week 1 to 7
o Final exam will be closed book, covering topics from week 8 to 14.

TEACHING METHOD
Teaching method consists of: (put only if applicable)
Lecture
Class discussion
Individual assignment
Group paper and discussion

yes
yes
yes
yes

The organization of the course:

The delivery of course materials is through (i) class teaching and tutoring and (ii) active
involvement of students in doing exercises, in analyzing short articles, and in writing small
papers.
The utilization of class teaching to deliver the course materials is necessary, as much of the
materials involve strong technical and philosophical understanding that will be upon the
responsibility of both the lecturers and tutors. Hence, active student participation is also
important, as students should be able to develop their keenness and their analytical skill on
the subjects. Since macroeconomics deals with how to use the concepts and theories to
analyze the real-world phenomenon, active student involvement in developing their strong
sense of analytical skill needs to be encouraged.
The function of class tutoring is to help students understanding the materials given by the
lecturers through the utilization of exercises and case examples. In addition, the tutors are
also responsible for assisting students during the paper writing process.

LECTURERS POLICY FOR ASSIGNMENT(S)

It is important that students should submit the assignment(s) no later than due date and time in
both hard copy and soft copy. Any late work will be penalized 5 point a day with a maximum late
submission of 3 days. Any late work more than 3 days will no longer be given any mark and, as a
result, the overall mark for the assignment will be 0 (no mark).

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CLASS TIMETABLE
Meeting
Contents
1
Introduction of Macroeconomics
What is macroeconomics?
Theory and model of
macroeconomics
Short run, long run, and very long run
Class time table and rules for 1
semester
2
Macroeconomics Data
Measuring Gross Domestic Product
Measuring Consumer Price Index
Measuring Unemployment
Linkage among macroeconomic
variables
Notes on Indonesian macroeconomic
indicators
3
National Income, Money, and Inflation
Production function and supply of
goods and services
Income distribution and marginal
products of factor of production
Demand on goods and services
Markets: Supply and Demand in
goods&services market
Money and quantity theory of money
Seniorage, inflation, and the cost of
inflation
Interest rate and the demand from
money
4
Open Economy
Movement of goods&services and
capital
Role of exchange rate
small open economy vs.large open
economy
5
Unemployment
Natural rate of unemployment
Wage rigidity and structural
unemployment
Labor market experiences
6
Economic Growth Part 1
Introduction of Solow Model
Capital accumulation
Population growth
Golden rule of level of capital
7
Economic Growth Part 2
The role of technological progress
Intermediate Macroeconomics_OS 2014-2015

MKW
1

BLC
1

DF
1

3,4

3,4,9

2,9,10

2,18,19

12,19

6,7

2,7

10,11

3,4

12,13

3,4,5

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10

11

12

13

14

Solow growth accounting

Beyond Solow Model
Some empirical studies and policy of
economic growth
Introduction to Economic Fluctuation
What is business cycle?
Short run fluctuation
Aggregate Demand vs. Aggregate
Supply in the short run
Stabilization policy
Application of IS-LM
IS-LM as short run fluctuation model
IS-LM as theory of Aggregate
Demand
Understanding the Great Depression
Mundell-Fleming Model and Exchange
Rate
Small open economy with floating
exchange rate
Small open economy with fixed
exchange rate
Changing in price level
Large open macroeconomy

Aggregate Supply and Trade off

Inflation and Unemployment
Aggregate Supply Model
Philips Curve
Macroeconomic Policy Debate
Stabilization Policy
Government Debt
Microeconomics Behind
Macroeconomics and Introduction of
Advance in Business Cycle
Consumption (Keynes, Fisher,
Mogdigliani, Friedman, Hall, and
Laibson)
Investment (Business, Residential,
and Inventory)
Money (Money supply and demand)
Introduction: Advance in Business
Cycle Theory
Group Paper Presentation

Intermediate Macroeconomics_OS 2014-2015

22,23

10,11

3,4,5

10,11

12

18,19,20,
21

12

13

6,7

14,15

24,25,26

20

16,17,18,1
9

14,15,16,1
7

13,14,15,16
,17

AS/AD

AS/AD

AS/AD

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ATTENDANCE
Referring to the faculty regulation, the Program requires students to fulfill a minimum
attendance of 80% to be eligible for the final exam. Thus, students should attend a minimum 11
out of 14 lecturing sessions and 10 out of 12 tutorial sessions.

EXAMINATION REGULATION
1. Students may use non-programmable calculators only.
2. Students may use the dictionary provided by the program only. Students should notify
their exam supervisor(s) if they need it.
3. Students should not conduct any act of cheating during the examination. Students will
automatically be graded E for the subject if they are caught cheating during the
examination of the respective subject. In addition, students will be graded E for
all other subjects taken during the particular semester, whose examinations
have taken place prior to the cheated examination.
4. Deferred examination is only applicable if it is requested in written by the Program.

ORIGINALITY
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 others 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.

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