Download ECON 3080-002 Intermediate Macroeconomic Theory

'
INTERMEDIATE MACROECONOMIC THEORY
ECONOMICS 3080-2
(formerly 408)
SECTION 2
SPRING 1989
CLASS HRS:
12:30-1:45 TuThr
THOMAS CARR
CLASSROOM: 117
OFFICE: Econ 4A
OFFICE HRS:
2:00-3:30
TuThr
SUBJECT
Macroeconomics ls the study of the economy in the aggregate.
The analysis centers on the factors determining the level of
national output, employment, inflation, and interest rates.
There is considerable disagreement between various schools of
macroeconomic thought about how the economy works . The
differences in theory lead to different policy prescriptions.
This course will provide an analytical framework to examine the
macroeconomic problems, evaluate the dominant macro theories, and
allow you to draw your own conclusions about how the economy
functions.
READINGS
1) Froyen, Richard T., Macroeconomics 2nd ed., Macmillian
Publishing Co. 1986.
2) Readings package at Kinko's On the Hill, 1313 College.
3) Recommended newspapers and magazines: Wall Street Journal,
Business Week, Barron's, The Economist, Newsweek, Time, etc.
EXAMS AND GRADING
The course grade is
Midterm 1
Midterm 2
Final Exam
weighted by the following factors:
30%
30%
40% (comprehensive)
100%
In borderline cases, factors such as class participation,
motivation, and upward progress are considered. Tenative exam
dates are listed in the course outline. Bring bluebooks
for exams.
1
READING
OUTLINE
Introduction
A. Background of Major Theories
B. Macroeconomic Indicators
I. Classical Economics
A. Price Theory and Say's Law
B. output and Employment
c. Loanable Funds
D. Quantity Theory of Money
E. The Classical Model
F. The Great Depression
Chap . 3
. Chap . 4
Scardino-NYT
II . Keynesian Economics
A. Keynes: Gene ~a1 Theory
1. Income Dete rmination Model
a . Consumption
b. Investment
c. Equilibrium Income
2. Keynes' Monetary Theory
a. Money Demand: Liquidity
b. Interest Rate Theory
*** MIDTERM I***
Chap. 1
Chap . 2
WSJ-Herman
Keynes
Chap. 5
Chap. 6
(p.128-142)
Thursday, Feb. 16
B. Nee-Keynesian: The Neoclassical-Keynesian Synthesis
Chap. 6
1. IS-LM Model
(p.142 - 176)
a. LM: Money Market
b . IS: Product Market
c . Interest Rate-Income Equilibrium
d. Policies and Case Studies
Chap. 7
2. Aggregate Supply and Demand Model
Chap. 8
a. Aggregate Demand and IS-LM
b. Aggregate Supply and Labor
c. Price Level-Output Equilibrium
d. Policies and Supply Shocks
Okun
III. Monetarism
A. Modern Quantity Theory
1. Friedman's Money Demand
2. Money and Income
B. output and Inflation
1. Natural Rate of Unemployment
2. Long Run Phillips curve
c . Policies and Case Studies
IV. New Classical Economics
A. Rational Expectations Hypothesis
B. Policy Ineffectiveness Postulate
Summary: Macroeconomic Theories
*** MIDTERM II***
2
Chap. 9
Chap. 10
Friedman
Clark-WSJ
Economist
Chap. 11
McCall um
Chap. 12
Klamer
Tuesday, Mar. 21
,.
v. Growth and Supply-side Economics
A. Growth and Productivity
B. Supply-side Economics
VI. International Sector
A. Exchange Rates
B. Trade
C. Open Economy IS-LM
Chap. 17
VII. Extensions of the Models
A. Consumption
B. Investment
c. Money Demand
Wed.
Chap. 16
Feldstein
Blinder
Chap. 13
Chap. 13
Chap. 14
*** FINAL EXAM***
, May 10, 1989, 11:30 am to 2:30 pm
3