Economics 303 Section 1

Intermediate Macroeconomics

Fall 2011

BEH 110

MW 10:00 – 11:15 am

Instructor

Bernard Malamud

Office: BEH 502  Phone: 895 – 3294  Fax: 895 – 1354

Office Hours: MW 11:30 – 12:30 pm; 2:30   3:30 pm; and by appointment.

e-mail: bernard.malamud@unlv.edu   Website: www.unlv.edu/faculty/bmalamud

Please communicate with me via your Rebelmail account, by phone, or stop by my office.

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General Nature of the Course

This course considers the determination of income, output, employment, and the price level in a market economy.  The roles of fiscal and monetary policies in promoting stability and growth are examined.  Prerequisite: Admission to a business major/junior standing, ECON 103. 3 credits.

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Course Objectives

The theory and facts of macroeconomics will be used and useful to you in your career as an economist.  You should already be familiar with various principles of macroeconomics.  You will now master and build on these principles, learn their roots in the literature of the discipline, explore the positions of contending schools of thought, examine recent evidence testing these positions, and understand the policy implications of these positions.  We will regularly discuss macro-fluctuations and policy debates as they occur during the semester.  Upon completion of the course, you should be able to use appropriate models—models   of aggregate supply and aggregate demand, animal spirits and financial fragility, and the Solow growth model—to explain macroeconomic fluctuations and growth and to understand the impacts of monetary and fiscal policies on financial markets and the real economy.  Special attention will be paid to understanding the current global slump and efforts to combat it. __________________________________________________________

Text and Supplementary Readings

·        Olivier Blanchard, Macroeconomics, 5th edition. Prentice-Hall, 2009.  Earlier editions can serve as well.  Access the textbook’s website at http://www.pearsonhighered.com/blanchard/

·        George Akerlof and Robert Shiller, Animal Spirits,  Princeton U. Press, 2009

·        Joseph Stiglitz, Freefall. Norton, 2010.

Supplements

·        Hyman Minsky, John Maynard Keynes.  Columbia University Press, 1975.

·        Economic Report of the President  www.access.gpo.gov/eop/index.html

·        The Economist http://www.economist.com


Examinations and Grading

Your grade will be based on a 40-point Principles of Macro “Final,” two 150-point classroom exams, a third 100 point classroom exam, and a 200-point comprehensive final examination.  You will be able to re-do one question on each classroom exam at home; your score for that question will be the average of your classroom and take home scores. 

Attendance and class participation will affect your grade. 

 

Sep 26 Principles of Macro (ECON 103) Takehome “Final” due            40 points

Oct   3 Classroom Exam, Chapters 1 – 5                                                 150

Nov  2 Classroom Exam, Chapters 6 – 9                                                 150

Nov28 Classroom Exam, Chapters 10 – 13                                             100

             Pop quizzes                                                                                 ???

Dec 12 Final Examination, 10:10 am – 12:10 pm                                   200

                             Maximum Total Points                                             640+ points

 

Approximate Grade Distribution

 

            Average Score (out of 640+ points)                          Final Grade

                                    90 percent                                           Borderline A-

                                    80 percent                                           Borderline B-

                                    70 percent                                           Borderline C-

                                    60 percent                                           Borderline D-

Makeup Policy

Makeup exams may be arranged at mutual convenience if you have a compelling reason to miss a scheduled classroom exam.  A makeup exam must be taken before the missed exam is returned to the class.  There will be no makeup final exam.  However, a student missing a class because of observance of a religious holiday and students who represent UNLV at any official extracurricular activity shall also have the opportunity to make up assignments.  Such students must provide official written notification no less than one week prior to the missed class(es).

 

Class Conduct

Your instructor and classmates deserve courtesy.  If you must arrive late or leave early, do so quietly.  Inform me beforehand if you must leave a class early.  Smoking and eating in class are prohibited.  Talking to your neighbors in class, reading newspapers and magazines, and texting on a cellphone is rude, disruptive, and unacceptable.  While this probably need not be said, anyone found engaging in any act of academic dishonesty will be punished in accordance with UNLV policies.

 

Other Information

The Disability Resource Center (DRC) coordinates all academic accommodations for students with documented disabilities. The DRC is the official office to review and house disability documentation for students, and to provide them with an official Academic Accommodation Plan to present to the faculty if an accommodation is warranted. Faculty should not provide students accommodations without being in receipt of this plan.

UNLV complies with the provisions set forth in Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, offering reasonable accommodations to qualified students with documented disabilities. If you have a documented disability that may require accommodations, you will need to contact the DRC for the coordination of services. The DRC is located in the Student Services Complex (SSC), Room 137, and the contact numbers are: VOICE (702) 895-0866, TTY (702) 895-0652, FAX (702) 895-0651. For additional information, please visit: <http://studentlife.unlv.edu/disability/>.

 

Course Outline

 

Dates

Topic, Discussion Problems (End of Chapter)

Do each “discussion problem” shown in parenthesis (Chapter – Problem Number(s)) before class.  Treat it like homework.  While it will not be collected, you will be expected to participate in its discussion.

 

Reading

In Texts

Aug 29,31

 

 

 

 

Sep 5

 

 

Sep 7,12

 

 

 

Sep 14,19

 

 

Sep 21,26

 

 

 

Sep 26

 

Sep 28

 

Oct 3

 

 

Oct 5,10

 

 

 

Oct 12,17

 

 

Oct 19

 

 

 

Oct 24,26

 

 

 

Oct 31

 

Nov 2

 

Course Organization

Tour of the World: What’s Up?  What’s Not? (1 – 1,6)

Tour of the Book:  Macro-Talk (2 – 4,5,6,9)

Principles of Macro Redux

 

Labor Day Recess

 

The Core: Short-run

The Goods Market: Z = C + I + G + X – Q 

(3 – 2,3,5,6)

Problems: Chapters 1,2,3

 

Financial Markets: Md, Ms, i   (4 – 2,6)

Problems: Chapter 4

 

Goods and Financial Markets: IS - LM

·         Policy Exercises and Dynamics (5 – 4)

Problems Chapter 5

 

Principles of Macroeconomics Takehome “Final” Due

 

Catch-up and Review

 

Classroom Examination, Chapters 1 – 5 (150 pts)

 

The Core: Medium-run

The Labor Market: Wages, Prices, and the “Natural Rate”  (6 – 3)

Problem: Chapter 6

 

Putting It Together: AS – AD and Policy  (7 – 3, 5,6)

Problems: Chapter 7

 

The Phillips Curve: Incarnations and Elaboration

(8 – 3, 5)

Problems: Chapter 8

 

Inflation, Activity, and Money Growth

     Okun/Lucas/Volcker (9 – 3,6)

Problems: Chapter  9

 

Catch-up and Review

 

Classroom Examination, Chapters 6 – 9,22 (150 pts)

Chapter 1

Chapter 2

Review your Principles text

 

 

 

 

Chapter 3

 

 

 

Chapter 4

 

 

Chapter 5

 

 

 

 

 

 

 

 

 

 

Chapter 6

 

 

 

Chapter 7

 

 

Chapter 8

 

 

 

Chapter 9

 

 

 

 

 

 


Course Outline (continued)

 

Dates

 

Topic, Discussion Problems (End of Chapter)

Reading

In Text

Nov 7

 

 

Nov 9

 

Nov 14,16

 

Nov 21

 

 

 

Nov 23

 

Nov 28

 

 

Nov 30

Dec   5

 

 

 

 

Dec 7

 

Dec 12

 

The Story of Macroeconomics

 

The Core: Long-run

The Facts of Growth

 

Saving, Accumulation, and Output (11 – 5,8)

 

Technological Progress and Growth (12 – 7)

 

Progress, Wages, and Unemployment (13 –2)

 

Catch-up and review

 

Classroom Examination, Chapters10 – 13,27 (100 pts)

 

Macro-Instability: Expectations/Bubbles

Macro Pathologies: Depressions and Slumps

Theory of Investment

Financial Instability Hypothesis and Implications

Freefall

Animal Spirits

 

Catch-up and Review

 

Final Examination 10:10 am – 12:10 pm (200 pts)

Chapter 27

 

 

Chapter 10

 

Chapter 11

 

Chapter 12

pp.248-254

Chapter 13

pp.271-276

 

 

 

 

 

Chapter 22

Minsky Ch. 5

Minsky Ch 6,7

Stiglitz

Akerlof & Shiller