Download ECON 3080-003 Intermediate Macroeconomic Theory

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UNIVERSITY OF COLORADO
Department of Economics
lntermed1ate Macroeconomic Theory
Course Outl 1ne
Economics 3080 Section 003
Tuesday) Thursday 8:00 - 9: 15am
S,pring Semester 1990
Instructor: Douglas A Ruby (Office: Economics 309c)
Office Hours: M, 9:00-10:00 am; Tu 9:30-11 :00; Th 9:30-10:30.
Course Description:
Macrneconomics ls the study of economic behavior ln the aggregate. This
area of economics concerns 1tself wi tl1 Issues relat.Jng to the employment ot
resources., inflation) economic growth., and interactions in the world
economy. This course will focus on the interelationship of economic
variables in tl1e goods market, financial markets. labor markets, and
international markets. A special reference will be made to economic events
and issues of the past decade (Le., the twin deficits, the savings and loan
crisis, tr1e preeminence of the Federal Reserve System in guidance of the
economy ... ). Tt1is course will be taught with emphasis on theory and applied
tools.
Required Text:
Vv1acht.el, Paul, Macroeconomics. From Tl1eory to Practice, 1989., McGrawHi l l, New York.
Optional Materials:
Economic Report of the President. 1990, U.S. Government Printing Off ice,
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The United States Budget in Brief. FY 1990, U.S. Government Pt~intlng Off 1ceJ
Washinaton D.C., 1989.
Greider, William, Secrets of tf1e Temple, 1987, Simon & Schuster, New York.
Course Grade:
Your grade will be based on your performance on two midterm exams
( 100 points each)) a final exarn (200 points)., and at least five worksheets
(20 points each) tiistril)uteti tl1rougt1out the semester.
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Economics 3050 - Spring 1990
Course Out 1i ne
Week of :
Topi c
Text
Ch. l
Ovenl i ew of rnacroeconorni c prob 1ems, nat i ona 1 i ncorne
accounting, and business cycles.
Ch. 2,3
._loll. 3()
The product market and aqrireqate dernar11t Theories of
consumption: the 1if e eye 1e hypothesis l3nd the perrnanent
income hypothesis.
Ch. 4, 16
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n ·1e product rnarket {continued). Theories of investrnent: the
neoclassical model and the accelerator model.
Ch. 17
Feb. /J
The role of government expenditure and taxes. Product
rnar~~et equi 1i tiri um.
E:,::arn I
Feb 2()
Ch. 5
Introduction to financial marr~ets: The money market, the bond
market, and the stoc~,~ market.
Cr1. 5_. 9
Money creation and the Federa 1 Reserve System. Theories of
money dernand. Money rnarket equi l i bri urn. Ch. 9. 14
l18r 6
Open econorny macroeconorr11 cs. Fixed i:m,j f1 e~d b1e e:,::chan1]e
n:ite regimes. Deterrnination of balance of payments
equi li br i urn.
Ch. 11
The e}<ecution and effects of fiscal and monetary policy.
Deficits and the debt.
Ch. 1o. 12
Tt1e eff ect8 of rnacroeconom1c polic~d (conti nue1j).
Exam II
Spr1 ng Break.
The labor market: Wfiges .. prices . and unemp 101Jrnent. The
natural rate of unernp I O!Jrnent. Price l eve 1 deterrni nation.
Ch. 15, 6
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1:conom1 cs :sotso - 5pn ng 1~~o
Course Outline (cont)
Week of:
Topic
.Ap.r /a
Theories of i nfl at ion and i nfl all onary expectations. The Phillips
curve.
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Text
Ch. 7
Theorh3s of inflation (continued). The costs of inflation.
Infl at ion and interest rates.
Ch. 8
Apr 24
Monetari srn and econorni c po 1i C!-1.
Ch. 13
l/a_y.
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The Rat i ona 1 Expectations t·101je l.
Ch. 19
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Final Exam. ( 11 :30arn - 2:30prn)