Class meetings: M W F<= o:p>
Introduction:
In
this class we will develop an understanding of macroeconomics by surveying =
current
macroeconomic theory and testing hypotheses about those theories. We will
center our study on the critical questions that macroeconomists are dealing
with today.
What
do we know?
1. In the long run a
country’s capacity to produce goods and services determines the stand=
ard
of living of its citizens.
2. In the short run aggre=
gate
demand influences the amount of goods and services that a country produces.=
3. In the long run the ra=
te of
money growth determines the rate of inflation but it does not effect the ra=
te
of unemployment
4. In the short run
policymakers who control monetary and fiscal policy face a trade off between
unemployment and inflation.
Important
unresolved questions:
1. How should policymakers
raise the economy’s natural rate of output?
2. Should policymakers
stabilize the economy?
3. How costly is inflatio=
n and
how costly is reducing inflation?
4. How big is the problem=
of
government budget deficits or surpluses?
Course Materials:
Course
Materials will be distributed throughout the semester.
Each
student should be familiar with statistical concepts, regression analysis a=
nd
the World Wide Web.
Grading Criteria:
Grades
will be established according to the following criteria:
75%
mid-term and final exams
25%
Class participation, research projects, attendance
|
Week |
Content |
|
1 |
National
Income Accounting and the Data of Macroeconomics |
|
2 |
A
Neoclassical Macroeconomic Model Macroeconomic
Analysis Project 1.doc |
|
3 |
Growth
Theory I (Neoclassical Growth Theory) |
|
4 |
Growth
Theory II (Endogenous Growth Theory) |
|
5 |
Unemployment,
Money and Inflation |
|
|
|
|
6 |
Mid-term exam |
|
7 |
Aggregate
Demand and Economic Fluctuations |
|
8 |
Aggregate
Supply |
|
9 |
|
|
10 |
Consumption
Articles\Mehra
and Martin- Why Does Consumer Sentiment Predict Household Spending.pdf |
|
11 |
Investment
Articles\Stark
and Taylor-Activist Monetary Policy for Good or Evil.pdf |
|
|
|
|
12-
13 |
New
Business Cycle Theory Romer-
The Great Crash And The Onset Of The Great Depression.pdf |
|
|
Final Exam Friedman,
Schwartz- A Monetary History of the United States 1857-1960.pdf |