Download ECON 3080-001 Intermediate Macroeconomic Theory

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INTERMEDIATE MACROECONOMIC THEORY
ECONOMICS 3080
SECTION 1
SPRING 1990
1:00-1:50 MWF
GUGG 205
THOMAS CARR
OFFICE: Econ 4A
OFFICE HRS:
M 12-1
Tu 2:30 - 3:30
W 2- 3
SUBJECT
Macroeconomics is the study of the economy in the aggregate.
The analysis centers on the factors determining the level of
national output, e mplo yment, 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 3nd e d., Macmillian
Publishing Co. 1986.
2) Recommended newspapers and magazines: Wall Street Journal,
New York Times, The Economist, Business Week, Barron's.
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.
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OUTLINE
READING
Introduction
A. Background of Major Theories
B. Macroeconomic Indicators
Chap. 1
Chap. 2
I. Classical Economics
A. Price Theory and Say's Law
B. Output and Employment
C. Loanable Funds
D. Quantity Theory of Money
E. The Great Depression
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
Chap. 3
Chap. 4
Chap . 5
Chap. 6
(p.131-145)
***
MIDTERM I***
Monday, Feb. 19
B. Nee-Keynesian: The Neoclassical-Keynesian Synthesis
1. IS-LM Model
Chap. 6
a. LM: Money Market
(p.146-182)
b. IS: Product Market
c. Interest Rate-Income Equilibrium
d. Polici e s 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
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***
Wednesday, March 21
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Chap. 9
Chap. 10
Chap. ·.1 1
Chap. 12
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V. Growth and Supply-side Economics
-- VI. International Sector
A. Exchange Rates
B. Trade
C. Open Economy IS-LM
Chap. 16
Chap. 19
*** FINAL EXAM***
Friday May 11, 1990
7:30 pm to 10:30 pm
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