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COURSE SYLLABUS
Economics 322
Intermediate Income Theory
Time: 2:30-3:45
Place:AB 213
Professor Mark Pingle: Office BB 318F
Office Phone: 784-6634
Home Phone: 358-8546
Office Hours: MWF 4:00-5:00 and by appointment
Spring 2001
Course Description: The economy as a whole is studied using mathematical, graphical, and verbal tools.
Standard macroeconomic theories are presented that explain observed economic activity.
Macroeconomic models are used evaluate government policies under varying assumptions about how the
economy works. Some elementary econometrics and time series techniques are introduced. Some
literature is reviewed so that the student obtains a sense of where macroeconomic theory has been and
where it is headed.
Student Performance Objectives: By the end of the semester, the student should:
 Have a general knowledge of US economic performance since 1929;
 Be able to construct a macroeconomic model using a system of equations and a set of
coordinate plane diagrams;
 Be able to use macroeconomic models to explain real world economic events and evaluate
the impact of various government policy actions;
 Have enough knowledge of the macroeconomics literature to be able to identify the more
significant issues in macroeconomics, past and present.
 Be able to use computer technology more effectively to present and analyze data;
 Be able to write more effectively;
 Be able to use mathematics as a tool more effectively.
Required Course Materials:
1. Intermediate Macroeconomics, Pingle. To be distributed at a cost of $10. Make checks
payable to Omicron Delta Epsilon (ODE).
2. US Macroeconomic Statistics: A Set of Figures and Data Tables to Supplement a
Macroeconomic Course, Mark A. Pingle, 5th Edition, McGraw-Hill, 2000.
Grading:
20% Midterm 1; Wednesday, February 14
20% Midterm 2; Monday, April 12
30% Final; Monday, May 14 2:15-4:15
20% Assignments
10% Participation (Asking questions; being prepared for class; timely work)
In addition, the following grading policy will be applied:
 To receive a C course grade or above, all assignments must be completed and requests for revisions
on assignments must be addressed.
Holidays (No Class):
President’s Day: Monday, February 19
Spring Break: March 19 and March 21
Assignments: You will be given a series of 7 assignments. The assignments are to be put in a folder that
has a three-hole punch binding with brads. (Please: No three ring binders, and no folder without brads.)
You will turn in your folder periodically and will receive feedback on your work. Except for Assignment
7, all of your work must be done in either MS WORD or in EXCEL. Except for Assignment 7, no handwritten work will be accepted. You will receive one grade at the end of the course for your entire
package of assignments viewed as a whole, with content and presentation each receiving weight.
Although no grades will be given on individual assignments or for the intermittent checks, you will
receive deductions to your assignments grade if you do not meet the intermittent deadlines or if the work
you turn in for an intermittent check demonstrates a lack of effort.
Course Syllabus: CH refers to classnotes. Fig refers to statsbook.
Date Topic
Reading Assignments & Assignments Due
1/22 Macroeconomics as social science
CH1
Production Facts
Fig 1-4
Assignment 1: Book Review
1/24 Macroeconomic Accounting
CH2, Fig 5-12, 15-16
Statsbook Table 3 in Appendix A
1/29 Role of government
Fig 33-43
Assignment 2: Statsbook Questions
1/31 Measuring production trends:
Geometric and exponential models
CH3 3.1-3.3.2
Assignment 3: Trend Analysis
Folder Check 1 (Assign. 1&2)
2/5
Measuring production trends:
Log difference & polynomial models CH3 3.3.3-3.3.4
2/7
Production fluctuations
CH3 3.4
2/12 The production function and labor productivity CH3 3.5; Fig 19
2/14 Midterm 1
2/19 President’s Day: No Class
None
2/21 Comparative Statics---A Diagrammatic Approach
Appendix A, Appendix B
2/26 Calculating Comparative Static multipliers
Appendix A, Appendix B
Folder Check 2 (Assign 3)
2/28 Labor demand and labor supply
CH4 4.1-2.2
3/5
Labor market equilibrium and disequilibrium CH4 4..3; Fig 23, 25-28
3/7
Labor market econometrics
CH4 4.4, CH3 3.6
Assignment 4: Estimating the Cobb-Douglas Production Function
3/12 Book Review Presentations I
None
3/15 Aggregate Supply
CH 5
3/19 Spring Break: No Class
3/21 Spring Break: No Class
3/26 Money and Monetary Theory
CH 6, Fig 20-21, 29-32
Assignment 5: Estimating the velocity of M2
3/28 Money and Monetary Theory
CH 6, Fig 20-21, 29-32
4/2
The Capital Market
CH 7, Fig 13-14, 17-18, 22, 44-45
Assignment 6: Estimating a consumption function and an investment function
4/4
The Capital Market
CH 7, Fig 13-14, 17-18, 22, 44-45
4/9
Midterm 2
4/11 The IS-LM Framework
CH8
4/16 The Classical Macromodel
CH9
Folder Check 3 (Assign 4,5,6)
4/18
4/23
4/25
4/30
5/2
5/7
5/9
5/14
The Classical Macromodel
CH9
Assignment 7: Modeling Questions as Review for Final
The Keynesian Critique
CH 10 10.1-10.2
Crowding Out
CH 10 10.3.10.4
What Causes Recessions?
CH 10 10.5
Monetary and Fiscal Policy
CH 10: 10.6-10.7
Recent Developments in Macroeconomic Thought
Handouts
Folder Due
Prep Day: No Class, but review at class time if you wish to attend
Final (from 2:15-4:15)
Suggested Books for Assignment 1
Ayres, C., Toward a Reasonable Society: The Values of Industrial Socieity, 1961.
Bohm-Bawerk, E., Capital and Interest, 1884.
Chamberlin, E. The Theory of Monopolistic Competition, 1933.
Cournot, A., Researches into the Mathematical Principles of the Theory of Wealth, 1897.
Clark, J.B., The Distribution of Wealth, 1899.
Edgeworth, F., Collected Papers Relating to Political Economy, 1925.
Engels, F. and K. Marx, The Communist Manifesto, 1848.
Engels, F., The Condition of the Working Class in England, 1844.
Fisher, I., The Purchasing Power of Money, 1911.
Fisher, I., The Theory of Interest, 1930.
Friedman, M., Studies in the Quantity Theory of Money, 1956.
Friedman, M., Capitalism and Freedom, 1962.
Friedman, M., Free to Choose, ????
Friedman, M., and Anna Schwartz, A Monetary History of the United States, ????
Galbraith, J.K, The Affluent Society, 1958
Gailbraith, J.K., The New Industrial State, 1967.
Hayek, F.A., Prices and Production, 1934.
Hayek, F.A., Individualism and Economic Order, 1948.
Heilbroner, Robert. The Worldly Philosophers, 1953
Hicks, J.R., Value and Capital, 1939.
Hicks, J.R., Crisis in Keynesian Economics, 1974.
Hobbes, Thomas, Leviathon, 1691.
Hobson, The Economics of Unemployment, 1922.
Hume, D., Political Discources, 1752.
Jevons, W.S., The Theory of Political Economy, 1871.
Keynes, J.N., The Scope and Method of Political Economy, 1891.
Keynes, J.M., Treatise on Money, 1930.
Keynes, J.M, The General Theory of Employment Interest, and Money, 1936.
Knight, F., Risk, Uncertainty, and Profit, 1921.
Kuznets, Modern Economic Growth, 1966.
Leijonhefvud, A., On Economics and the Economics of Keynes, 1966.
Locke, John, Essay Concerning Human Understanding, 1673.
Malthus, T.R., The Principle of Population, 1798.
Marx, K., Das Capital, 1867.
Marshall, A., Principles of Economics, 1890.
Mill, J.S., Principles of Political Economy, 1848.
Mill, J.S., On Liberty, 1859.
Mitchell, W.C., Business Cycles, 1913.
Pareto, V., Manual of Political Economy, 1906.
Patinikin, Money, Interest, and Prices, 1965.
Pigou, A.C., Wealth and Welfare, 1920.
Posner, R.A., Economic Analysis of Law, 1972.
Ricardo, D., Principles of Political Economy and Taxation, 1817.
Robinson, J., The Theory of Imperfect Competition, 1933.
Samuelson, P., Foundations of Economic Analysis, 1947.
Say, J.B., Traite, 1803.
Schumpeter, J.¸ The Theory of Economic Development, 1954.
Schumpeter, J., Capitalism, Socialism, and Democracy, 1942.
Senior, N., Outline of the Science of Political Economy, 1836.
Smith, A., The Wealth of Nations, 1776.
Smith, A. The Theory of Moral Sentiments, 1759.
Veblen, T., The Theory of the Leisure Class, 1899.
Veblen, T., The Theory of Business Enterprise,
Veblen, T., The Engineers and the Price System, 1921.
Walras, L., Elements of Pure Economics, 1874.
Wicksell, K., Lectures on Political Economy, 1906.
Wicksteed, P., The Common Sense of Political Economy, 1935.