Download ECON 3080-003 Intermediate Macroeconomic Theory

INTERMEDIATE MACROECONOMIC THEORY
ECONOMICS 3080
SECTION 3
FALL 1989
2:00-2:50 MWF
HLMS 341
THOMAS CARR
OFFICE: Econ 4A
OFFICE HRS:
1:00-1:50 MWF
SUBJECT
Macroeconomics is 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 very different economic policy
prescriptions. This course will develop analytical models of the
economy, compare the leading macroeconomic theories, and examine
important historical economic events and policies that have
influenced the economy in the past.
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,
New York Times, The Economi st, Business Week, Barron's, e tc.
EXAMS AND GRADING
The course grade is
Midterm 1
Midterm 2
Final Exam
weighted by the following factors:
30%
30%
40% ( c ompre hensive}
100%
In borderline cases, factors such as class participation,
motivation, and upward progress are considered. Tenative e xam
dates are listed in the course outline. Bring bluebooks
for exams.
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OUTLINE
READING
Introduction
A. Background of Major Theories
B. Macroeconomic Indicators
Chap. 1
Malabre-WSJ
Chap. 2
I. Classical Economics
A. Price Theory and Say's Law
B. Output and Employment
Chap. 3
C. Loanable Funds
D. Quantity Theory of Money
E. The Great Depression
Chap. 4
Scardino-NYT
II. Keynesian Economics
A. Keynes: General Theory
1. Income Determination Model
a. Consumption
b. Investment
c. Equilibrium Income
2. Keynes' Monetary Theory
a. Money Demand: Liquidity
b. Interest Rate Theory
*** MIDTERM I***
Keynes
Chap. 5
Chap. 6
(p.128-142)
Friday, Oct. 6
B. Neo-Keynesian: The Neoclassical-Keynesian Synthesis
1. IS-LM Model
Chap. 6
a. LM: Money Market
(p.142-176)
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
The Economist
Chap. 11
McCall um
Chap. 12
Klamer
Monday, November
13
V. Supply-side Economics
Chap. 16
Robe rts
Feldstein
Blinder
VI . International Sector
A. Exchange Rates
B. Trade
C. Open Economy IS-LM
Chap. 17
Business Week
VII. Policy
A. Fiscal Policy and Deficits
B. Monetary Policy and the Fed
Chap. 18
Blinder
Bernstein
Chap. 19
Business Week
*** FINAL EXAM***
Tuesday Dec 19, 1989 11:30 am to 2:30 pm
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