Chicago Macro: Will It Ever Stop?
Letter of Introduction

Econ 1 Spring 2012 U.C. Berkeley: Topics


5-unit course

Lectures MW 11-12 Wheeler Auditorium
DeLong office hours: W 3-5 Evans 601


  • Reich, Tyson, DeLong--currently being written...

Auxilliary reading books:

  • Partha Dasgupta: Economics: A Very Short Introduction 

  • Paul Seabright: The Company of Strangers

  • Milton Friedman and Rose Director Friedman: Free to Choose


W Jan 18: Demand and Supply

  • Reading for Section: Dasgupta, Prologue, Macroeconomic history

M Jan 23: Market Equilibrium

  • Reading for Section: Dasgupta, Trust, Communities
  • Section: How to do problem set 1: demand and supply

W Jan 25: Market Elasticity

  • Reading for Section: Dasgupta, Markets
  • Section: Problem set 1 due

M Jan 30: Price Ceilings/Floors

  • Reading for Section: Dasgupta, Science and technology as institutions
  • Section: How to do problem set 2: elasticities, price ceilings/floors/quantity restrictions

W Feb 1: Markets as Win-Win Institutions

  • Reading for Section: Dasgupta, Housholds and firms
  • Section: Problem Set 2 due

M Feb 6: Governments Create Markets

  • Reading for Section: Dasgupta, Sustainable development, Social well-being and democratic government, Epilogue
  • Section: How to do problem set 3: win-win/consumer and producer surplus

W Feb 8: Governments Correct Markets

  • Reading for Section: Friedman and Friedman, Introduction, The power of the market, The tyranny of controls
  • Section: Problem set 3 due

M Feb 13: Governments Override Markets

  • Section: Go over sample midterm

W Feb 15: MIDTERM 1

  • No section; graded midterms to DeLong for review by Monday Feb 20


W Feb 22: Consumers

  • Reading for Section: Friedman and Friedman, The anatomy of crisis, Cradle to grave

M Feb 27: Businesses

  • Reading for Section: Friedman and Friedman, Created equal, What's wrong with our schools?
  • Section: How to do problem set 4: consumers and households
  • Section: hand back graded exams

W Feb 29: Perfect Competition

  • Reading for Section: Friedman and Friedman, Who protects the consumer? Who protects the worker?
  • Section: Problem set 4 due

M Mar 5: Monopolistic Competition

  • Reading for Section: Friedman and Friedman, The cure for inflation
  • Section: How to do problem set 5: businesses/perfect competition

W Mar 7: Monopoly

  • Reading for Section: Friedman and Friedman, The tide is turning
  • Section: Problem set 5 due

M Mar 12: Oligopoly and Strategy

  • Reading for Section: Seabright, Introduction, Who's in charge?
  • Section: How to do problem set 6: market power, adverse selection, moral hazard

W Mar 14: The Labor Market

  • Reading for Section: Seabright, Part II prologue, Man and the risks of nature
  • Section: Problem set 6 due

M Mar 19: Economic Inequality

  • Reading for Section: Seabright, Our violent past, How did the social emotions evolve?
  • Section: How to do problem set 7: strategy/labor/inequality


W Mar 21: What Macroeconomics Is

  • Reading for Section: Seabright, Money and human relationships, Honor among thieves? Honor among bankers?
  • Section: Problem set 7 due

M Apr 2: MIDTERM 2

  • No section; graded exams to DeLong for review by Apr 6

W Apr 4: Aggregate Demand and Aggregate Supply Equilibrium

  • Section: Go over midterms
  • Section: Short essay on Friedman and Friedman due

M Apr 9: Shifting the Aggregate Demand Curve

  • Reading for Section: Seabright, Professionalism and fulfillment, Epilogue to parts I and II
  • Section: How to do problem set 8: aggregate demand and supply
  • Section: Hand back graded exams

W Apr 11: Aggregate Supply, the Phillips Curve, and Inflation

  • Reading for Section: Seabright, Prologue to part III, The city, Water
  • Section: Problem set 8 due

M Apr 16: Long-Run Economic Growth

  • Reading for Section: Seabright, Prices for everything? Families and firms
  • Section: How to do problem set 9: inflation and unemployment, economic growth

W Apr 18: The Government Budget and the Macroeonommy

  • Reading for Section: Seabright, Knowledge and symbols, Exclusion, Epilogue to Part III
  • Section: Problem set 9 due

M Apr 23: The Global Savings Glut, the Housing Bubble, the Financial Crisis, and the Recession

  • Seabright, Prologue to part IV, States and empires, Globalization and political action
  • How to do problem set 10: the government budget

W Apr 25: Policies to Stem the Recession, the Jobless Recovery, the European Financial Crisis

  • Reading for Section: Seabright, How fragile is the great experiment?
  • Section: Problem set 10 due

M Apr 30: REVIEW

  • Section: Short essay on Seabright due