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Syllabus
Economics 104H – Spring 2008
Principles of Macroeconomics
INSTRUCTOR:
OFFICE:
PHONE:
E-MAIL:
OFFICE HOURS:
Wayne Carroll
Schneider 471
836-3388
carrolwd
10:00-11:00 Tu and 11:00-12:00 MWF, and other times when I’m in the
office.
This course provides an intensive introduction to the tools and concepts of macroeconomics. At
the end of this course you should understand current debates concerning macroeconomic policies
and should be able to anticipate some future macroeconomic problems.
Lectures - Since most of the material in this course will be presented in the lectures, it is essential
that you attend class regularly. While class attendance will not be taken into account directly in
the determination of your course grade, it is likely to be reflected in your performance on exams.
If you miss a lecture, you should obtain that day's notes from someone else in class, and then ask
me about any remaining questions you have.
Readings - The text for this course is Principles of Economics by N. Gregory Mankiw (4th
edition). Reading assignments from the text are listed in the course outline that follows. Other
readings will be assigned as the course progresses. Some readings and other materials will likely
be posted on the D2L online site for the course, so you need to check there often for updates.
Outside Reading Requirement - As we go through the semester you will be expected to follow
current macroeconomic news. By the end of the course you should be able to understand
discussions of macroeconomic issues in sources such as The Wall Street Journal or New York
Times. You can subscribe to the online edition of the New York Times for free at
www.nytimes.com.
Grading - Your grade in this course will be based on your performance on three exams during the
semester, a comprehensive final exam, a short research paper, and several quizzes. Each of the
four exams and the research paper will carry an equal weight in your grade, and the quizzes
together probably will count about as much as one exam. Tentative dates for the exams are:
First exam:
Second exam:
Third exam:
Final exam:
21 February
27 March
1 May
Thursday, 15 May at 3:00
Makeup exams - You may take a makeup exam only if you contact me before the regularly
scheduled exam is given. Makeup exams will be harder than the regularly scheduled exams.
Credit will be given for late assignments only if they are turned in by the beginning of the next
class period.
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Tentative Schedule of Topics
All readings listed below are from Mankiw. Each reading assignment listed in the schedule is to be
completed before the next class meeting.
22 January
Week 1
24 January
29 January
Week 2
31 January
(Last day to drop
courses is 4 Feb.)
5 February
Week 3
7 February
12 February
Week 4
14 February
19 February
21 February
Week 5
26 February
Week 6
28 February
4 March
6 March
Week 7
Introduction
 Ten Principles of Economics
 Current Macroeconomic Issues
Read Chapters 1, 2
 Production Possibilities and Economic Growth
Read Chapter 4
Supply and Demand
 Demand
 Supply
 Market Equilibrium
Applications of Supply and Demand Curves
Read Chapter 23
Measuring National Output: GDP
 Definition
 Is GDP a good measure of economic welfare?
 National output = national income
 Real GDP
 Using GDP and real GDP to make comparisons over time: some examples
Read Chapter 24
Measures of the Price Level
 The yardstick problem
 Measures of the price level
 Calculating the price level
 Calculating real variables
 Examples of real and nominal variables
 Real and nominal interest rates
 Read Chapter 25
Production and Growth
 International Comparisons
 Productivity
 Economic growth and public policy
Review
Exam #1
For next time: Read Chapter 26
Saving, Investment, and the Financial System
 Structure of the financial system
 Savings and investment
Saving, Investment, and the Financial System (continued)
 Deficits
 The market for loanable funds
 Determinants of interest rates
Read Chapter 28
Unemployment
 Measuring unemployment and employment
 Short-run determinants of unemployment
 Unemployment in the long run: the natural rate of unemployment
Read Chapter 29
Money, Banking, and the Federal Reserve System
 Money
 Banks and their role in the supply of money
page 3
11 March
Week 8
13 March
17-19 March
25 March
Week 9
27 March
1 April
Week 10
3 April
8 April
(last day to drop
a course with a
W)
10 April
Week 11
15 April
Week 12
17 April
22 April
Week 13
24 April
29 April
Week 14
1 May
6 May
8 May
15 May
Week 15
 The Federal Reserve System
 Monetary policy tools
Read Chapter 30
Inflation
 Money and inflation
 The quantity equation
 The classical dichotomy and money neutrality
Spring Break
 Welfare effects of inflation
 The Wizard of Oz
Exam #2
For next time: Read Chapters 31 and 32
International Economics: Basic Concepts
 International flows of goods: net imports
 International capital flows: net foreign investment
 International trade balance
 Exchange rates
 Purchasing Power Parity
 Foreign Exchange Markets
Read Chapter 33
Aggregate Supply and Aggregate Demand
 Business cycles
 The aggregate demand curve
 The aggregate supply curve
 Aggregate supply in the long run
 Aggregate supply in the short run
Read Chapter 34
Monetary and Fiscal Policy
 Money, interest rates, and aggregate demand
 Effects of monetary policy on aggregate demand
 Money neutrality revisited
 Effects of fiscal policy (and budget deficits) on aggregate demand
 Applications of aggregate demand and supply analysis
Read Chapter 35
The Phillips Curve
 The empirical evidence
 The birth, death, and rebirth of the Phillips Curve
 The Phillips Curve in the short run and the long run
 The Phillips Curve and the natural rate of unemployment
 Implications for government policy
Exam #3
For next time: Read Chapter 36
Current Macroeconomic Issues
Current Macroeconomic Issues
Final Exam at 3:00 in the usual room