Advanced Macroeconomics for Undergraduates

This manuscript covers selected topics in advanced macroeconomics at the undergraduate level. It builds on materials in intermediate macroeconomics textbooks (e.g., Barro et al., 2017) by covering the mathematics of some basic dynamic general-equilibrium models, which are designed to give undergraduate students a firm appreciation of modern developments in macroeconomics. Chapter 1 begins with a simple static model to demonstrate the concept of general equilibrium. Then, Chapter 2 to 4 cover the neoclassical growth model to explore the effects of exogenous changes in the level of technology. Chapter 5 to 7 use the neoclassical growth model to explore the effects of fiscal policy instruments, such as government spending, labour income tax and capital income tax. Chapter 8 develops a simple new Keynesian model to analyze the effects of monetary policy. Chapter 9 begins the analysis of economic growth by reviewing the Solow growth model. Chapter 10 to 12 present the Ramsey model and introduce different market structures to the model to lay down the foundation of the Romer model. Chapter 13 incorporates an R&D sector into the Ramsey model with a monopolistically competitive market structure to develop the Romer model of endogenous technological change. Chapter 14 to 15 examine the implications of the Romer model. Chapter 16 concludes this manuscript by presenting the Schumpeterian growth model and examining its different implications from the Romer model