Teaching Portfolio
M. Iqbal Ahmed
Department of Economics
Kansas State University
November 9, 2015
Teaching Portfolio
M. Iqbal Ahmed
Contents
1 Teaching philosophy
2
2 Teaching experience
2.1 Course taught . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 Teaching assistant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
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3 Professional development training
3.1 Teaching workshops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
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4 Teaching effectiveness
9
4.1 Teaching evaluation statistics . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.2 Some comments from students . . . . . . . . . . . . . . . . . . . . . . . . 10
5 Course materials
5.1 Syllabus: Econ 530 . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2 Syllabus: Econ 510 . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3 Syllabus: Econ 520 . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4 Sample of exam review . . . . . . . . . . . . . . . . . . . . . . . . .
5.5 Sample of exam questions: Money & Banking . . . . . . . . . . . .
5.6 Sample of exam questions: Intermediate Macroeconomics . . . . .
5.7 Sample of homework assignments: Intermediate Microeconomics
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6 Appendix: TEVALS & GTA professional development certificates
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Teaching Portfolio
1
M. Iqbal Ahmed
Teaching philosophy
The two key elements of my teaching philosophy are 1) cognitive engagement of students in the classroom and 2) inspiring them to apply what they’ve learned to real
world challenges. I also believe that a teacher should be passionate about his/her
teaching and compassionate for her/his students. I have had the opportunity to develop and refine my teaching philosophy at Kansas State University since Fall 2011,
when I began my teaching career first as a graduate teaching assistant and later as a
primary instructor. Additionally, I have benefitted from two professional development
trainings on improving teaching skills.1
Research suggests that cognitive engagement increases students’ classroom learning and motivation.2 However, engaging undergraduate students and getting them
to see the real-world application of economics is challenging, since the discipline of
economics is structured with abstract theories and concepts the students sometimes
find “unrealistic.” I address this problem by seeking points of confluence between the
course concepts and ideas that are already familiar to students. For example, in my
Money & Banking lectures, I guide them to consider the link between current low interest rates and the recent financial crisis before introducing difficult concepts such
as zero lower bound, quantitative easing policy, etc. Or, when I explain how fiscal or
monetary policy are linked to the financial market, I initiate a discussion on contemporary issues such as why stock markets around the world jolted when the Greece
government failed to make a deal on its debt. To further bring topics and concepts to
life, I always update my class website with interesting and relevant economic news and
video clips. I also find that students’ cognitive engagement with the course material
increases when we use Excel to apply economic tools through quantitative analysis.
The following reflections from my students confirm that my approach fosters cognitive
engagement:
“...I also enjoyed the learning environment he created between him as an instructor and
us as students.”
“...I like the real world application problems we went through, it helped me understand
better...I think he is a good teacher, he tries hard & cares a lot & that means a lot to me
as a student.”
“I enjoy economics. I just recently decided I will get a minor in Economics along with
my majors in Accounting and Finance. You’re a great teacher. Thanks for everything
you do!!”
“I learned some real good applications in this course [Money & Banking]. The excel
portion of the homework was good. I like understanding & using excel.”
1
Graduate Teaching Assistant Recognition of Achievement in Professional Development (Level 1 &
Level 2), Teaching and Learning Center, Kansas State University.
2
Cornoa & Mandinach, 1983
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Teaching Portfolio
M. Iqbal Ahmed
Along with the content a teacher chooses to include, the techniques a teacher uses
also facilitate cognitive engagement and inspiration. The techniques I employ include
active and collaborative learning techniques such as group discussions and presentations, in-class quizzes, practice problems, etc. Individual and group assignments
often require students to find relevant data and articles and analyze how various
model studied in class apply to those situations. At the intermediate level courses,
students are exposed to more challenging tasks as I always include essay questions
both in the homework assignments and exams. Requiring students to explain their
logic and ideas helps them to think independently and analytically; it also allows me
to see their weaknesses and misconceptions. I also strive to develop a competitive
atmosphere that simulates professional life. The following comments show that my
students have liked these approaches:
“I am an Econ major. He is by far, the best instructor we had in any class at K-State
period. He was very effective presenting materials, assigning homework, and relevant
exercises to absorb the material.”
“ ...the class [Intermediate Microeconomics] was effective to learn about microeconomic
theories and tools. He provided lots of practice exercises that were very helpful in making me think hard about the concept.
“Very effective way to learn. Iqbal did a very good job of teaching this class. I could tell
that he is passionate about teaching and truly cared about our learning.”
“Overall a pretty good instructor, and showed a strong passion for the subject...I liked
this course [Money & Banking], a lot of work behind each assignment but I enjoyed
learning and a favorite by far.”
Finally, I strongly believe that a teacher must exhibit care for their students. Effective teachers are always aware of the collective welfare and the general well-being of
their students. I understand first-hand how life factors such as work load, financial
issues, family issues, etc., impact students’ academic success. I take these situations
seriously, counseling distressed students and assisting them outside of class if they
need extra help with the course content. I am always available to help students during
regular office hours or by appointment, as well as through emails or K-State’s online
chatroom. I often rely on technology to connect with and help students who struggle
in my class. I also find these platforms very effective for communicating with introverted students who hesitate to participate within the classroom. Following are some
comments from my students that showing they knew I cared about their well-being
and success:
“He always encouraged to use office hours. Most teachers just tell them to you”
“Great teacher. Knows the stuff and works hard. Reaches out to the students that need
help.”
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M. Iqbal Ahmed
In conclusion, it is important that my teaching philosophy reflect through my students’
accomplishments. It always motivates me to set new standards of excellence - high,
yet attainable - to facilitate optimal student learning. I strongly believe that teaching
is a continuous learning process. Hence I am open to learn from family and friends,
colleagues, peers and students as I strive to improve and grow as a teacher.
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Teaching Portfolio
2
M. Iqbal Ahmed
Teaching experience
I started my teaching career as a graduate student in Economics at Kansas State
University since Fall 2011. I was Graduate Teaching Assistant (GTA) both for graduate and undergraduate courses. As a GTA my initial job was tutoring undergraduate
students, grading homework assignments and quizzes, proctoring exams etc. I was
qualified to teach undergraduate courses as a primary instructor in Fall 2013 as I
passed the teaching seminar offered by the department of economics, which is a prerequisite. Since then I have taught seven sections of three different intermediate level
courses, including Money and Banking, Intermediate Macroeconomics, and Intermediate Microeconomics.
In near future, I would also be interested to teach other courses including principles
of microeconomics, principles of macroeconomics courses as well as quantitative and
data analysis courses at undergraduate level. I would be interested to teach quantitative and data analysis courses including econometrics, Times Series Analysis and
Forecasting, Financial Econometrics, business mathematics and statistics in addition to other regular courses. Besides, I have a great interest to teach graduate level
courses in the field of macroeconomics and monetary policy, econometrics, macroeconomic aspects of international economics, international development and finance
etc.
I have the experience of teaching both small class consisting of 15-20 students as well
as medium-sized class consisting of 50-60 students. With the experience of two and
half years of teaching, I am now more confident to teach larger sections.
Following highlights my experience as a primary instructor and as a teaching assistant at Kansas State University:
2.1
Course taught
Fall 2013 to present: Primary Instructor, Kansas State University
• Money and Banking: Spring 2015 || Summer 2015 || Fall 2015 || Spring 2016
(Expected to teach)
• Intermediate Macroeconomics: Fall 2013 || Fall 2014
• Intermediate Microeconomics: Spring 2014 || Summer 2014
2.2
Teaching assistant
Fall 2013 to present: Graduate Teaching Assistant, Kansas State University
Graduate level
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M. Iqbal Ahmed
• Macroeconomics I: Spring 2013
• Econometrics II: Fall 2013
Undergraduate level
• Development Economics: Fall 2012
• Comparative Economics: Fall 2012
• Money and Banking:Fall 2011, 2012
• Intermediate Macroeconomics: Fall 2013 || Spring 2012
• Intermediate Microeconomics: Spring 2012, Fall 2013
• Principle of Macroeconomics: Fall 2011, 2012 || Spring 2012
• Principles of Microeconomics: Fall 2011 || Spring 2012, 2013
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Teaching Portfolio
3
M. Iqbal Ahmed
Professional development training
Each semester I strive to improve my teaching skills. To assist with this, I have attended two professional development trainings on improving teaching skills, one in
2013-14 and the other in 2014-15, which included more than 20 teaching workshops.
The training entitled “Graduate Teaching Assistant Recognition of Achievement in
Professional Development” offered by Teaching and Learning Center, Kansas State
University, requires to attend at least 10 teaching workshops to complete each level.
I completed both the Level 1 and Level 2, in which I attended more than 20 teaching
workshops, indicating my strive for improving teaching skills. Following are the list
of workshops I attended over the last two years at Kansas State University.
3.1
Teaching workshops
1. “Avoiding PowerPoint-lessness in your Lectures and other Tips on Teaching Styles”,
Dr. David Fallin (Instructor, Marketing), April 14, 2015
2. University Distinguished Teaching Scholar Presentation, Dr. Mick Charney,
April 7, 2015
3. Dr. Gregory Eiselein, Professor, English; Coffman University Distinguished
Teaching Scholar, March 24, 2015
4. “From Teflon to Velcro: Making Concepts Stick,” Dr. Tori Culbertson, Assistant
Professor, Management, February 10, 2015
5. “Faculty Exchange for Teaching Excellence: Spring Teaching Workshop,” January 30-31, 2015
6. “You Mean I Have a Choice?!” Dr. Briana Goff, Professor, Family Studies &
Human Service, January 27, 2015.
7. “Teach N’ Tech”, November 18, 2014
8. “Reclaiming the Lecture,” October 23, 2014
9. “The New Science of Learning: Concepts and Strategies for Changing the Way we
Teach,” Dr. Todd Zakrajsek, October 24, 2014.
10. “GTA Session: At Risk Training,” Dr. Dorinda Lambert, Director of Counseling
Services, October 14, 2014
11. “Creating an Inclusive Classroom Environment,” Dr. Kay Ann Taylor’s, Associate Professor, Curriculum & Instruction, September 9, 2014
12. “Brain-Based Learning,” Dr. Jane Fishback, Associate Professor in the Division
of Continuing Education, Kansas State University, April 11, 2014
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M. Iqbal Ahmed
13. ’Games without Frontiers: Promoting Active Learning through Simulations, Games
and Role-Playing Exercises,” multiple sessions, February 28, 2014
14. “GTA session: Is this going to be on the test? A closer look at Assessment,” March
4, 2014
15. “GTA Session: Tech n’ Teach,” Dr. Rebecca Gould, Director of the Information
Technology Assistant Center, February 4, 2014,
16. “The Spring 2014 Teaching Workshop: Actively Engaging the Brain,” January
31 and February 1, 2014
17. “Keep Calm and Game on: Using Games in Education,” Ben Ward, Instructional
Designer, November 7, 2013
18. “This is your Brain on being a GTA,” Dr. Cathie Lavis, Associate Professor of
Landscape Management and co-coordinator for the Faculty Exchange for Teaching Excellence , October 1, 2013
19. “Toward ‘Multifaceted’ Partnerships: Multidisciplinary, multiorganizational, multisemester,” Dr. Clayton, a senior scholar at the Center for Service and Learning
at Indiana University- Purdue University, Indianapolis, September 26, 2013
20. “Ready, Set, Teach!” Dr. Jana Fallin, Director of the Center for Advancement
of Teaching and Learning (CATL), September 3, 2013
21. “The NY Times and College Teaching,” Tamra , the New York Times, September
26, 2013
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Teaching Portfolio
4
M. Iqbal Ahmed
Teaching effectiveness
4.1
Teaching evaluation statistics
Following table reports the summary of key scores obtained from my teaching evaluations 3 :
Table 1: Teaching evaluations
ECON 530
ECON 520
ECON 510
Avg.
Spring 2015
Summer 2015
Spring 2014
Summer 2014
Fall 2013
Fall 2014
3.4
3.3
3.8
3.9
4.2
4.3
4.3
3.7
3.5
3.6
3.4
3.5
3.77
3.72
3.6
3.7
4.1
4.6
4.0
4.1
4.2
4.1
4.3
4.5
4.6
4.8
4.7
4.7
5.0
4.7
3.8
4.1
3.5
4.1
3.8
4.3
4.0
4.5
4.03
4.23
4.23
4.47
3.0
3.2
3.4
3.8
3.9
4.1
3.9
4.2
4.2
4.3
4.3
3.7
3.4
3.3
3.9
3.3
3.6
3.3
3.62
3.75
3.77
Overall Effectiveness
Overall effectiveness as a teacher
Amount learned in the course
Establishing Learning Climate
Made the course goals and objectives clear
Well prepared for class
Interest in helping students learn
Willingness to help outside of class
Facilitating Student Learning
Explained subject clearly
Stimulated thinking about the subject
Made helpful comments on student works
• ECON 530: Money and Banking
• ECON 520: Intermediate Microeconomics
• ECON 510: Intermediate Macroeconomics
Teaching evaluation reports are attached in the appendix.
3
All scores are based on a total of 5 possible points with 5-Very High, 1-Very Low.
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Teaching Portfolio
4.2
M. Iqbal Ahmed
Some comments from students
“Iqbal has a strong passion for teaching economics and encourages students to think
deeply about the subject”
“The course materials did help. I did like the slides. I learned some real good applications in this course [Money & Banking]. The excel portion of the homework was good.
I like understanding & using excel.”
“Overall a pretty good instructor, and showed a strong passion for the subject ... I liked
this course a lot of work behind each assignment but I enjoyed learning and a favorite
by far.”
“I have had 2 econ classes before this [Money & Banking] & have learned & retained
little to no information ... but I enjoyed this class & learned a lot. Professor Ahmed
was a great teacher.”
“He always encouraged to use office hours. Most teachers just tell them to you. It was
a first pace class and he was always concerned we would understand the materials. I
wish his office was closer to campus and had some different office hours, so I could get
the extra help needed. Overall he wanted students to learn and remember the materials”
“... I like the real world application problems we went through, it helped me understand
better ... think he is a good teacher, he tries hard & cares a lot & that means a lot to me
as a student.”
“The course was helpful to learn about how macro theories are connected to real economy like the fiscal or monetary policies of the money supply”
“Very effective way to learn. Iqbal did a very good job of teaching this class. I could tell
that he is passionate about teaching and truly cared about our learning”
“I am an Econ major. He is by far, the best instructor we had in any class at K-State
period. He was very effective presenting materials, assigning homework, and relevant
exercises to absorb the material.”
“This class was helpful and Ahmed is a good teacher. He really cares about his students.
He provides lots of materials to help us learn. I also enjoyed the learning environment
he created between him as an instructor and us as students.”
“The class was very effective to learn about microeconomic theories and tools. He pro-
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Teaching Portfolio
M. Iqbal Ahmed
vided lots of practice exercises that were very helpful in making me think hard about
the concepts.”
“The course was beneficial to me. Professor Iqbal Ahmed was a fair and very helpful
teacher. This has been best Econ course [Intermediate Macroeconomics] I have taken
at KSU.”
“I Enjoyed the class and thought it was really effective in helping me learn more about
Econ .... Ahmed genuinely tried to help students when they did not understand.”
“Great teacher. Knows the stuff and works hard. Reaches out to the students that need
help.”
“See if you can get a closer office! Very helpful when I went for help.”
“I feel I learned a great deal in this short amount of time. Class exercises and homework
were helpful.”
“Very good teacher. Makes class enjoyable. Always willing to help.”
“Sometimes too slow of presenting materials, but it helped to make info stick.”
“ ...Ahmed is a very good teacher. He explain the concepts very thoroughly.”
“Great class ... had good interaction.”
“It was very helpful. It might be better to use more examples to ensure students understand each learning requirement. His interactions were helpful to the process.”
“The class helped me learn micro-econ theories and the class material was helpful.”
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Teaching Portfolio
5
M. Iqbal Ahmed
Course materials
5.1
Syllabus: Econ 530
Money & Banking
Econ 530: Section A
Kansas State University
Summer 2015
Instructor: M. Iqbal Ahmed
Class hours: M,T,W,U, F at 9:10am- 10:10am
Office: Waters 339A
Email: iahmed@ksu.edu
Phone: 785-313-0668 (cell) & 785-532-4560 (office)
Class location: AK221
Office Hours: TU 10:30am – 11.30am or by appointments
Personal website: www.miqbalahmed.com
Prerequisite: ECON 110 - Principles of Macroeconomics
Text: Mishkin F., The Economics of Money Banking & Financial Markets, eleventh
edition, Addison-Wesley, ISBN: 9780133836790, Copyright Year: 2016.
Slides: Many of the slides used in the lecture will be made available through K-State
Online. It will be useful to have these printed out before class.
Course description: The course is compartmentalized into four broad sections:
• First section reviews fundamental concepts of money and financial markets.
• Second section examines the concept, behavior, and structure of interest rates.
• Third section tells you about the structure of the financial market as well as
banking and management of the financial institutions.
• Fourth section makes you familiar with the role of the Federal Reserve Banks,
money supply process and monetary policy tools and its impacts on the economy.
Course goals and objectives: The main goal of the course is to learn how the financial market is integrated to the real economy via the monetary policy. Students will be
familiar with the U.S. financial market instruments, financial and banking system,
structure, regulations, monetary policy and role of the Federal Reserve Banks and
how they work. The objectives of this course are
• Equip students with financial markets and monetary policy tools and applications so that their analytical skills are enhanced, making them competitive to
work for banking and financial institutions.
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M. Iqbal Ahmed
• Students will demonstrate a strong understanding of many of the different concepts regarding the US’s financial system and the current issues relating to the
financial markets and monetary policy.
• This course will also help preparing students, especially, those who want to pursue career with business and economics measures, to take relatively more advanced financial and money market courses at graduate level.
Grades: Grades will be determined on the basis of the points earned on classroom
exercises, homework assignments and examinations and extra credit on attendance/
assignments. There will be two mid-terms and a final examination.
Classroom exercises: There will be a maximum of 10-12 unannounced class exercises (the lowest score will be dropped) in the class over the semester. The classroom
exercises will contain small economic and financial problems and you will be asked to
solve them either individually or in a group of two.
Homework assignments: There will be at least 6 homework assignments. The
homework will contain both essay and multiple choice questions. You may want to
discuss the homework problems with your classmates but you have to submit your
own homework in the class on due date. Late submission will not acceptable under
any circumstances unless there is a valid reason. If you fail to submit your homework
on due date you will get zero.
Practice exercises: I will post practice exercises for each of the chapters. Though you
will not receive any credit for solving the practice exercises, but solving the problems
in practice exercises will definitely help you to prepare for the exams. Make sure you
solve all the problems in the practice exercises as a part to prepare for exams.
Exams: You will have both multiple choice and essay type questions in the exams.
Your exams will be based on the materials to be covered in the lectures, homework
assignments, classroom exercises and practice exercises. Please bring your student
ID cards with you in the exam hall. In case of any changes of exam dates, I will notify
you in class. It is your responsibility to get updated with the class. Dates of exams
are following:
Midterm 1: Monday, June 22nd in class
Midterm 2: Monday, July 13th in class
Final Exam: Friday, July31st in class
We will try to strict by the deadlines unless any special circumstances arise. You may
want to use calculators during the exams but cell phones or calculators that can store
text are not allowed.
Make-up exams: There will not be an option for makeup exam under any circumstances. In case of verifiable personal emergency, contact me at least two days before
the exam. You have to show me sufficient proof of your absence. We may figure out
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M. Iqbal Ahmed
some alternatives. If you miss a midterm exam with an excuse conforming to university regulation, your final exam grade will be applied to the midterm exam you
miss.
Grade distribution:
Classroom exercises: 10%
Homework: 15%
Midterm 1: 20%
Midterm 2: 20%
Final Exam: 35%
Grading policy: Grades will be based on the following distributions:
>= 90% = A
Between 80 to 89.9 = B
Between 70 to 79.9=C
Between 60 to 69.9=D
<60% = Fail
Attendance policy: It is required to attend every class. In addition to the class
exercises, I may give extra-credit assignments on and off. For example, I may give
pop-up quizzes each worth one-point.
Classroom environment: You have to strictly follow the rules and regulations to
ensure classroom environment conducive. You are neither allowed to talk with your
fellow students nor to use your cell phones during the lectures. You have to be careful
so that you are not become the cause of disturbances to your fellow students. I will
take actions as per the Article V, Section 3, number 2 of the Student Judicial Conduct
Code, if students engage in behavior that disrupts the learning environment.
Readings: I will follow the text book mentioned above. I strongly encourage you to go
through the following chapters. I may not go through all the sections/ subsections in
each chapter, which I will announce during the lectures. By and large, I will try to deliver my lectures in the following sequences. However, there could be some changes in
the order as well as some inclusions or deletions of topics depending on the availability
of time. I will always keep you update if there is any change. It is your responsibility
to be aware any changes.
Section1: Background and overview of the financial system
Chapter 1. Why Study Money, Banking and Financial Markets?
Chapter 2. An Overview of the Financial System
Chapter 3. What Is Money?
Section 2: Concepts, behavior and structure of interest rates
Chapter 4. The Meaning of interest rates
Chapter 5. The behavior of interest rates
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Chapter 6. The risk and term structure of interest rates
Section 3: Structure, management of banking and financial institutions
Chapter 8. An economic analysis of financial structure
Chapter 9. Banking and the management of financial institutions
Chapter 12*. Financial Crisis**
Section 4: Role of the central bank and monetary policy tools and instruments
Chapter 13. Central banks and the Federal Reserve System
Chapter 14. The money supply process
Chapter 15. The tools of monetary policy
Chapter 16* The conduct of monetary policy: strategy and tactics
Chapter 21. Monetary policy and aggregate demand curves
Chapter 22.* Aggregate supply and demand analysis
*If time permits I will go through few sections from these chapters.
**Even if I do not go through this chapter, I will frequently talk about the financial
crisis during the lecture on other chapters to understand a concept in the context of financial crisis. So you should read this chapter as a reference.
Besides, I may provide you some outside readings, including news and articles on
current economic and financial issues. I will make it available for you through K-State
Online or as a handout. Exams, homework, classroom exercises and practice problems
will be based on the above mentioned chapters and the materials to be provided in the
class.
A guide to success in this course
• ATTENDANCE IS VERY IMPORTANT.
• Actively participate in class, don’t just be a passive observer.
• Do not try to memorize all the stuffs covered in the lecture, try to understand
each of the concepts and think how they are related to the real economy.
• Read the lecture notes thoroughly and read the book so as to think deeper into
the subject.
• Solve all the problems in homework, class exercises, and practice exercises. My
exams are mostly based on these and the related lecture notes. You may not
get the same questions in the exams copied from the assignments/ practice exercises, but I would give you a similar problem in different context. So thinking
is important.
• If you have any difficulties to understand a concept, please talk to me immediately. I will be available during the office hours or by appointment. I ENCOUR-
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M. Iqbal Ahmed
AGE YOU TO USE OFFICE HOURS as STUDENTS IN THE PAST BENEFITTED A LOT FROM OFFICE HOURS. You can also reach me through email as I
would try to respond your email as quick as possible.
• Last but not the least, try to interact with your classmates, discuss them with
the homework problems and practice exercises. This will help tremendously to
improve your learning process.
Statement Regarding Academic Honesty “Kansas State University has an Honor
System based on personal integrity, which is presumed to be sufficient assurance that,
in academic matters, one’s work is performed honestly and without unauthorized assistance. Undergraduate and graduate students, by registration, acknowledge the jurisdiction of the Honor System. The policies and procedures of the Honor System apply to all full and part-time students enrolled in undergraduate and graduate courses
on-campus, off-campus, and via distance learning. The honor system website can be
reached via the following URL: www.k-state.edu/honor A component vital to the Honor
System is the inclusion of the Honor Pledge which applies to all assignments, examinations, or other course work undertaken by students. The Honor Pledge is implied,
whether or not it is stated: “On my honor, as a student, I have neither given nor received
unauthorized aid on this academic work.” A grade of XF can result from a breach of
academic honesty. The F indicates failure in the course; the X indicates the reason is
an Honor Pledge violation.”
Statement Regarding Students with Disabilities Students with disabilities who
need classroom accommodations, access to technology, or information about emergency building/campus evacuation processes should contact the Student Access Center and/or their instructor. Services are available to students with a wide range of disabilities including, but not limited to, physical disabilities, medical conditions, learning disabilities, attention deficit disorder, depression, and anxiety. If you are a student
enrolled in campus/online courses through the Manhattan or Olathe campuses, contact the Student Access Centerat accesscenter@k-state.edu, 785-532-6441; for Salina
campus, contact the Academic and Career Advising Center at acac@k-state.edu, 785826-2649.
Statement Defining Expectations for Classroom Conduct All student activities
in the University, including this course, are governed by the Student Judicial Conduct
Code as outlined in the Student Governing Association By Laws, Article V, Section 3,
number 2. Students who engage in behavior that disrupts the learning environment
may be asked to leave the class.
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Teaching Portfolio
5.2
M. Iqbal Ahmed
Syllabus: Econ 510
Intermediate Macroeconomics
Econ 510: Section ZB
Kansas State University
Fall 2013
Instructor: M. Iqbal Ahmed
Class Class hours: T & U at 5:30pm- 7:55pm
Office: D002 Edwards Hall
Email: iahmed@ksu.edu
Phone: 785-313-0668 (cell)
Class location: WA 041
Office Hours: T & U 4:00-5:00pm or by appointments
Prerequisite: ECON 110 and ECON 120 and Intermediate Algebra
c 2013). ISBN-13:
Text: Macroeconomics by N. Gregory Mankiw (Eighth edition, 9781429240024. This text is required.
Slides: Many of the slides used in the lecture will be made available through K-State
Online. It will be useful to have these printed out before class.
Course description: I will start with some background and overview of the macroeconomics. The course is divided into two broad categories, namely Classical vs. Keynes
Theory of Macroeconomics:
• Part A reviews fundamental concepts of classical theory of macroeconomics. In
the first section of Part A, we will discuss the key aggregate variables of macroeconomic theories. In second section we will discuss about classical growth theory.
• Par B talks about business cycle theory of macroeconomics. In the first section we learn mostly the Keynesian views of macroeconomic theories through
IS-LM framework. In second section, we plan to talk about some selected topics in macroeconomics that include consumption and investment decisions, fiscal
policy and open economy macro economy.
Course goals and objectives: The main goal is that students learn the fundamentals of the theoretical macroeconomic models and their applications in the real economy. The objectives of this course are:
• Students will demonstrate a firm understanding of macroeconomic theories at
the intermediate level as students’ general knowledge of the meaning, relatedness and determination of key economic aggregates are improved.
• Enhance students’ analytical skills about various economic problems.
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• Equip students to understand discussions of economic issues and policies that
are important in businesses and investments.
• This course will also help preparing students to take relatively more advanced
level macroeconomic courses in future.
Grades: Grades will be determined on the basis of the points earned on quizzes/
classroom exercises, homework assignments and examinations and extra credit from
attendances/ assignments (if any) and bonus points. There will be one midterm and
one final examination.
Classroom exercises: There will be at least of five/ six class exercises/ quizzes (the
lowest score will be dropped) over the semester. The classroom exercises will contain
small macroeconomic problems and you will be asked to solve them either individually
or in a group of two.
Homework assignments: There will be four homework assignments. The homework will contain both essay and multiple choice questions. You may want to discuss the homework problems with your classmates but you have to submit your own
homework in the class on due dates. Late submission will not acceptable under any
circumstances unless there is a valid reason. If you fail to submit your homework
assignments on due dates you will get zero.
Practice exercises: I will also provide you some practice exercises for each section.
Practicing those exercises would help you to prepare for the midterm and final examinations. There will be no credit for this.
Exams: You will have both multiple choice and essay type questions in the exams.
Your exams will be based on the materials to be covered in the lectures, homework
assignments, classroom exercises and practice exercises. Please bring your student
ID cards with you in the exam hall. Dates of exams are following:
Midterm Exam: Thursday, November 14th in class
Final Exam: Thursday, December 12th at 5:30pm – 7:30pm
We will try to strict by the deadlines unless any special circumstances arise. You may
want to use calculators during the exams but cell phones or calculators that can store
text are not allowed.
Make-up exams: There will not be an option for makeup exam under any circumstances. In case of verifiable personal emergency, contact me at least two days before
the exam. You have to show me sufficient proof of your absence. We may figure out
some alternatives. If you miss a midterm exam with an excuse conforming to university regulation, your final exam grade will be applied to the midterm exam you
miss.
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Grade distribution:
Classroom exercises: 10%
Homework: 15%
Midterm 1: 20%
Midterm 2: 20%
Final Exam: 35%
Grading policy: Grades will be based on the following distributions:
>= 90% = A
Between 80 to 89.9 = B
Between 70 to 79.9=C
Between 60 to 69.9=D
<60% = Fail
Attendance policy: It is required to attend every class. In addition to the class
exercises, I may give extra-credit assignments on and off. For example, I may give
pop-up quizzes each worth one-point.
Classroom environment: You have to strictly follow the rules and regulations to
ensure classroom environment conducive. You are neither allowed to talk with your
fellow students nor to use your cell phones during the lectures. You have to be careful
so that you are not become the cause of disturbances to your fellow students. I will
take actions as per the Article V, Section 3, number 2 of the Student Judicial Conduct
Code, if students engage in behavior that disrupts the learning environment.
Readings: I will follow the text book mentioned above. I strongly encourage you to
go through the following chapters thoroughly. In some chapters, I will skip some sections, which I will announce during the lectures. By and large, I will try to deliver
my lectures in the following sequences. However, there could be some changes in the
order as well as some inclusions or deletions of topics depending on the availability of
time. I will always keep you update if there is any change. It is your responsibility to
be aware any changes.
Introduction of Macroeconomics
Chapter 1. The Science of Macroeconomics
Chapter 2. The data of macroeconomics
Part A-1: The Classical theory: The economy in the long run
Chapter 3. National Income: Where it Comes From and Where it Goes
Chapter 4.The Monetary System: Where it is and How it Works (selected sections
only).
Chapter 5. Inflation: Its Causes, Effects and Social Costs
Chapter 6. The Open Economy
Chapter 7. Unemployment
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Part A-2: Growth Theory: The economy in the very long run
Chapter 8. Economic Growth 1: Capital Accumulation and Population Growth
Chapter 9. Economic Growth II: Technology, Empiric and Policy (selected sections
Only if time permits)
Part B-1: Business Cycle Theory:The economy in the Short Run
Chapter 10. Introduction to economic Fluctuations
Chapter 11. Aggregate demand I: Building the IS-LM Model
Chapter 12. Aggregate demand II: Applying the IS-LM Model
Chapter 13. The Aggregate Supply
Chapter 14. The Short Run Trade off Between Inflation and Unemployment
Part B-2: Topics in Macroeconomics*
Consumption and investment decisions
Chapter 16. Understanding Consumer Behavior
Chapter 17. The Theory of Investment
Fiscal policy
Chapter 19. Government debt and Budget deficits
Open economy
Chapter 13. The Open Economy Revisited
*It may not be possible to cover all the chapters in this section due to to time constraint.
I will cover at least one or two topics from the listed above. I will choose the topics based
on students’ needs.
Besides, I may provide you some outside readings, including news and articles on current economic issues. I will make it available for you through K-State Online or as
a handout. Exams, homework and classroom exercises/quizzes will be based on the
above mentioned chapters and current economic events.
Statement Regarding Academic Honesty “Kansas State University has an Honor
System based on personal integrity, which is presumed to be sufficient assurance that,
in academic matters, one’s work is performed honestly and without unauthorized assistance. Undergraduate and graduate students, by registration, acknowledge the jurisdiction of the Honor System. The policies and procedures of the Honor System apply to all full and part-time students enrolled in undergraduate and graduate courses
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M. Iqbal Ahmed
on-campus, off-campus, and via distance learning. The honor system website can be
reached via the following URL: www.k-state.edu/honor A component vital to the Honor
System is the inclusion of the Honor Pledge which applies to all assignments, examinations, or other course work undertaken by students. The Honor Pledge is implied,
whether or not it is stated: “On my honor, as a student, I have neither given nor received
unauthorized aid on this academic work.” A grade of XF can result from a breach of
academic honesty. The F indicates failure in the course; the X indicates the reason is
an Honor Pledge violation.”
Statement Regarding Students with Disabilities Students with disabilities who
need classroom accommodations, access to technology, or information about emergency building/campus evacuation processes should contact the Student Access Center and/or their instructor. Services are available to students with a wide range of disabilities including, but not limited to, physical disabilities, medical conditions, learning disabilities, attention deficit disorder, depression, and anxiety. If you are a student
enrolled in campus/online courses through the Manhattan or Olathe campuses, contact the Student Access Centerat accesscenter@k-state.edu, 785-532-6441; for Salina
campus, contact the Academic and Career Advising Center at acac@k-state.edu, 785826-2649.
Statement Defining Expectations for Classroom Conduct All student activities
in the University, including this course, are governed by the Student Judicial Conduct
Code as outlined in the Student Governing Association By Laws, Article V, Section 3,
number 2. Students who engage in behavior that disrupts the learning environment
may be asked to leave the class.
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M. Iqbal Ahmed
Syllabus: Econ 520
Intermediate Microeconomics
Econ 520: Section ZB
Kansas State University
Fall 2013
Instructor: M. Iqbal Ahmed
Class hours: M & W at 5:30pm- 7:55pm
Office: D002 Edwards Hall
Email: iahmed@ksu.edu
Phone: 785-313-0668 (cell)
Class location: WA 333
Office Hours: M & W at 4:00pm -5:00pm or by appointments
Prerequisites: ECON 120 or AGEC 120 or AGEC 121 and Intermediate Algebra
Text: Microeconomics, 8/E, by Robert Pindyck and Daniel Rubinfeld. ISBN- 13:
9780132857123.
Slides: Many of the slides used in the lecture will be made available through K-State
Online. It will be useful to have these printed out before class.
Course description: The course is divided into three broad sections: The first section reviews fundamental concepts of supply and demand. The second section analyzes
consumer behavior. The last section looks at the firm behavior in perfect competition.
Course goals and objectives: The main goal of the course is to how to make rational
decision at the micro level. We will look at the economic problems both at consumers’
and firms’ point of view and explain the problems and solutions using microeconomic
theories and tools.
The objectives of this course are
• Students will demonstrate a strong understanding of microeconomic theories at
the intermediate level.
• Equip students with microeconomic tools and applications so that their analytical skills are enhanced to address various microeconomic problems and solutions. For example, after taking this course you are expected to be able to analyze consumer and firm behavior in different market structures and the impacts
of different public policies using graphs and algebraic equations.
• This course will also help preparing students to take relatively more advanced
level microeconomic courses in future.
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Grades: Grades will be determined on the basis of the points earned on classroom
exercises, homework and examinations and extra credit on attendance. There will be
one mid-term and one final examination.
Classroom exercise: There will be a maximum of five/six exercises in the class over
the semester. The classroom exercises will contain small economic problems and you
will be asked to solve them in a group of two.
Homework: There will be four homework assignments. The homework will contain
both essay and multiple choice questions. I will post the homework as I start with
a section so that you can solve it partially after each lecture. By the time I finish a
section you will be able to complete the entire homework.
You may want to discuss the homework problems with your classmates but you have
to submit your own homework in the class on due dates. Late submission will not
acceptable under any circumstances unless there is a valid reason. If you fail to submit
your home works on due dates you will get zero.
Practice problems: I will also provide you some practice exercises for each section.
Practicing those exercises would help you to prepare for the midterm and final examinations. There will be no credit for this.
Exams: You will have both multiple choice and essay type questions in the exams.
Your exams will be based on the materials to be covered in the lectures, homework
assignments, classroom exercises and practice exercises. Please bring your student
ID cards with you in the exam hall. In case of any changes of exam dates, I will notify
you in class. It is your responsibility to get updated with the class. Dates of exams
are following:
Midterm: Wednesday, April 9th in class
Final: (comprehensive) Wednesday, May 7th in class
You may want to use calculators during the exams but cell phones or calculators that
can store text are not allowed.
Make-up exams: There will not be an option for makeup exam under any circumstances. In case of verifiable personal emergency, contact me at least two days before
the exam. You have to show me sufficient proof of your absence. We may figure out
some alternatives. . If you miss a midterm exam with an excuse conforming to university regulation, your final exam grade will be applied to the midterm exam you
miss.
Grade distribution:
Classroom exercises 15%
Home works 20%
Midterm 30%
Final Exam 35%
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Grading policy: >= 90% = A
Between 80 to 89.9 = B
Between 70 to 79.9=C
Between 60 to 69.9=D
<60% = Fail
Attendance policy: It is required to attend every class as I will cover substantial
materials (perhaps more than a chapter) in each class. So if you miss a class it will
be difficult for you to make up. In addition, there will be extra credit for attending all
the class. I will take record your attendance on a regular basis. A student can earn a
maximum of 4 bonus points if he/she maintains 100% attendance record. You will not
receive any points if you are late in the class. Missing a class will indeed affect your
grades.
Classroom environment: You have to strictly follow the rules and regulations to
ensure classroom environment conducive. You are neither allowed to talk with your
fellow students nor to use your cell phones during the lectures. You have to be careful
so that you are not become the cause of disturbances to your fellow students.
Readings: I will follow the text book mentioned above. I strongly encourage you
to go through the following chapters thoroughly. In some chapters, I will skip some
sections, which I will announce during the lectures. By and large, I will try to deliver
my lectures in the following sequences. However, there could be some changes in the
order as well as some inclusions or deletions of topics depending on the availability of
time. I will always keep you update if there is any change. It is your responsibility to
be aware any changes.
Section 1
Chapter 2. The Basics of Supply and Demand
Section 2
Chapter 3. Consumer Behavior and Market Demand
Chapter 4. Individual and Market Demand
Section 3
Chapter 6. Production
Chapter 7. The Cost of Production
Chapter 8. Profit Maximization and Competitive Supply
Chapter 9. The Analysis of Competitive Markets
Chapter 10. Market Power: Monopoly and Monopsony
Besides, I may provide you some outside readings, including news and articles on current economic issues. I will make it available for you through K-State Online or as a
handout. Exams, homework, classroom exercises and practice problems will be based
on the above mentioned chapters and the materials to be provided in the class.
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Statement Regarding Academic Honesty “Kansas State University has an Honor
System based on personal integrity, which is presumed to be sufficient assurance that,
in academic matters, one’s work is performed honestly and without unauthorized assistance. Undergraduate and graduate students, by registration, acknowledge the jurisdiction of the Honor System. The policies and procedures of the Honor System apply to all full and part-time students enrolled in undergraduate and graduate courses
on-campus, off-campus, and via distance learning. The honor system website can be
reached via the following URL: www.k-state.edu/honor A component vital to the Honor
System is the inclusion of the Honor Pledge which applies to all assignments, examinations, or other course work undertaken by students. The Honor Pledge is implied,
whether or not it is stated: “On my honor, as a student, I have neither given nor received
unauthorized aid on this academic work.” A grade of XF can result from a breach of
academic honesty. The F indicates failure in the course; the X indicates the reason is
an Honor Pledge violation.”
Statement Regarding Students with Disabilities Students with disabilities who
need classroom accommodations, access to technology, or information about emergency building/campus evacuation processes should contact the Student Access Center and/or their instructor. Services are available to students with a wide range of disabilities including, but not limited to, physical disabilities, medical conditions, learning disabilities, attention deficit disorder, depression, and anxiety. If you are a student
enrolled in campus/online courses through the Manhattan or Olathe campuses, contact the Student Access Centerat accesscenter@k-state.edu, 785-532-6441; for Salina
campus, contact the Academic and Career Advising Center at acac@k-state.edu, 785826-2649.
Statement Defining Expectations for Classroom Conduct All student activities
in the University, including this course, are governed by the Student Judicial Conduct
Code as outlined in the Student Governing Association By Laws, Article V, Section 3,
number 2. Students who engage in behavior that disrupts the learning environment
may be asked to leave the class.
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5.4
M. Iqbal Ahmed
Sample of exam review
Review & study guide: Midterm II
Econ 530: Money and Banking
Summer 2015
Kansas State University
• Following gives a list of chapters, sections and related materials, which may not
be comprehensive but contains most of the topics that I have covered so far in
the class.
• This will guide you to study for the midterm exam 2 and help you to identify your
strength and weakness on different concepts discussed so far in the class. Please
take sometimes to identify the areas where you have clear understanding and
where you still have some difficulties and you may need to go over again before
the exam.
Chapter 4: Understanding Interest Rates
1. Measuring interest rates (pg. 66-70)
• Concept of Present Value
• Concept of Yield to Maturity
2. Credit market instruments (pg. 71-76)
Know the definitions & formulas of the following concepts
• Simple loan
• Fixed payment loans
• Coupon bond
• Discount/Zero coupon bond
• Consol/perpetuity bond
3. Difference between interest rate and returns (pg. 77-80)
• Inverse relationship between bond price and interest rates
• When the returns equal to the yield to maturity? item Potential implications of time to the maturity of a bond and interest rate on returns of a
bond.
• Risk free bond vs. Interest-rate risk on a long term bonds
• How to calculate the rate of return
• Current yield
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• Capital gain
Chapter 5: The behavior of interest rate
1. Determinants of asset demand (pg. 88-90, but to get a summary of this please
read the lecture notes)
• What are factors influencing the demand for assets? Definitions: wealth,
expected returns, risk, liquidity
• Theory of portfolio choice: How these factors are related to one’s demand
for assets? (Try to understand the direction of your demand for assets with
an increase/ decrease of one of the factors with examples as discussed in the
class)
2. Supply and demand in the bond market (pg. 91-94, but to get a summary of this
please read the lecture notes)
• Know the relationship between price and quantity demand for bond (look
at the example in pg. 91, and graph in pg. 92)
• Know the relationship between price and quantity supplied of bond
• How the interest rate is related with the price of bond in the demand-supply
framework (pg. 91)
• Market equilibrium (pg. 93)
3. Changes in equilibrium interest rates:(pg. 94-102, but to get a summary of this
please read the lecture notes)
• factors causing shift in demand curve: look at the summary table in pg. 96,
you will find it in lecture notes too)
• Changes in interest rate due to expected inflation: Fisher effects (understand the figure 4 in pg. 100)
• Changes in interest rate due to business cycle expansion (understand the
figure 6 in pg. 102)
4. Supply and demand in the market for money: the liquidity preference framework:(pg. 104-106, but to get a summary of this please read the lecture notes)
• Basic assumptions: household assets two assets: bond and money
• Know how excess supply/demand for money affects bond market: equilibrium in money and bond market- how one affects the other
• Money market equilibrium (understand the figure 8 in pg. 106)
• Opportunity cost of holding money
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5. Changes in equilibrium in liquidity preference framework (pg. 107-110, but to
get a summary of this please read the lecture notes)
• Factors causing shift in demand for money: income effect and price-level
effect
• Shifts in the supply of money
• Look at the summery table 4 in pg. 108, also given in the lecture notes)
• The demand for money due to – changes in income, price level (understand
the figure 9 in pg. 109)
• Changes in money supply (understand the figure 10 in pg. 110)
chapter 6: The Risk and term structure of interest rates
1. Risk Structure of interest rates (pg. 118-1, but to get a summary of this please
read the lecture notes)
• What is risk structure of interest rate?
• Default risk
• Default risk and default free bond
• Risk premium
2. Term structure of interest rates (pg. 126 -135, but to get a summary of this
please read the lecture notes)
• Term structure of interest rate
• What is Yield curve
• Three facts:
(a) Why interest rates move together
(b) why yield curve should be upward or downward slopping
(c) Why yield curve usually upward slopping
• the above three facts could be explained by three theories: (see the lecture
notes)
• What is expectation theory? Key assumption?
• How expectation theory explains that interest rate should move together?
• How expectation theory explains that yield curve could either upward or
downward slopping?
• Disadvantage of expectation theory
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• What is segmented market theory? Key assumption?
• What is Liquidity premium theory? Key assumption?
Please make sure you do the followings:
• Read lecture notes (including quizzes and examples) and the relevant sections
from the book as mentioned above
• Solve all the homework problems
• Solve all the class exercises
• Solve all the practice exercises uploaded in your course website
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5.5
M. Iqbal Ahmed
Sample of exam questions: Money & Banking
Econ 530: Money & Banking
Midterm II: Summer 2015
Kansas State University
Section A: Total Points ......
Sample Questions
MULTIPLE CHOICE: Choose the one alternative that best completes the statement
or answers the question.
1. A decrease in the price level causes the demand for money to ........... and the
interest rate to ........., everything else held constant.
(a) decrease; increase
(b) decrease; decrease
(c) increase; increase
(d) increase; decrease
2. In the figure above, the price of bonds would rise from P1 to P2 if
(a) there is a business cycle recession.
(b) there is a business cycle expansion.
(c) inflation is expected to decrease in the future.
(d) inflation is expected to increase in the future.
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3. Which of the following $1,000 face-value securities has the highest yield to maturity?
(a) A 5 percent coupon bond with a price of $800
(b) A 5 percent coupon bond with a price of $600
(c) A 5 percent coupon bond with a price of $1,000
(d) A 5 percent coupon bond with a price of $1,200
4. Risk premiums on corporate bonds tend to ........ during business cycle expansions and ......... during recessions, everything else held constant.
(a) increase; increase
(b) decrease; decrease
(c) decrease; increase
(d) increase; decrease
5. Suppose you are holding a 5 percent coupon bond maturing in one year with a
yield to maturity of 15 percent. If the interest rate on one-year bonds rises from
15 percent to 20 percent over the course of the year, what is the yearly return on
the bond you are holding?
(a) 5 percent
(b) 10 percent
(c) 15 percent
(d) 20 percent
6. When the expected inflation rate decreases, the real cost of borrowing .......... and
bond supply ........, everything else held constant.
(a) decreases; increases
(b) decreases; decreases
(c) increases; decreases
(d) increases; increases
7. If the expected path of one-year interest rates over the next five years is 3 percent, 4 percent, 5 percent, 7 percent, and 6 percent, then the expectations theory
predicts that today’s interest rate on the five-year bond is
(a) 4 percent.
(b) 4.5 percent.
(c) 5 percent.
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M. Iqbal Ahmed
(d) 5.5 percent.
8. When the Fed ........ the money stock, the money supply curve shifts to the .........
and the interest rate .........., everything else held constant.
(a) increases; right; rises
(b) increases; left; falls
(c) decreases; left; rises
(d) decreases; right; falls
9. The U-shaped yield curve in the figure above indicates that short-term interest
rates are expected to
(a) remain unchanged in the near-term and rise later on.
(b) rise in the near-term and fall later on.
(c) fall moderately in the near-term and rise later on.
(d) fall sharply in the near-term and rise later on.
10. If 1-year interest rates for the next four years are expected to be 4, 2, 5, and 5
percent, and the 4-year term premium is 1 percent, than the 4-year bond rate
will be
(a) 2 percent.
(b) 3 percent.
(c) 4 percent.
(d) 5 percent.
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Section B: Total Points .......
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
Please do not just write the answer to the numerical exercises, show all of your
work to get the full credit.
1. Short answers: (5 points)
(a) If the mortgage rates rise from 4% to 8% but the price of house is expected
to increase from 2% to 7%, are people more or less likely to buy houses?
Why? Give reasons to support your answer.
(b) Using the liquidity preference framework, show the effects on interest rate
when the Fed increases money supply?
(c) Consider two bonds: bond X is the short-term bond and bond Y is the longterm bond. Suppose interest rate of bond X is high in current year and you
expect them to be higher in the near future.
i. What is your prediction about interest rate on bond Y?
ii. Plot the yield curve of short-term (bond X) and long-term (bond Y) bond
based.
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2. Coupon bond, yield to maturity and rate of return: (6 points)
(a) Consider a one-year coupon bond with a 5% annual coupon and has the face
value $1,000 with yield to maturity of 7%. What is the bond’s selling price?
Please do not just write the answer, show your work to get the full credit.
(b) Suppose the price of the bond changes to $1100 from the selling price you
calculated in part (a). What is the expected rate of return, given the coupon
rate is same at 5%?
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3. Predicting the bond market equilibrium: (7 points)
Suppose Jenna, who works for XYZ Inc, has been assigned to analyze the bond
market by her manager. The research department provided her the following
demand and supply equations for one-year discount bond with a face value of
$1,000:
Demand equation for bonds: P d = 1260 - 0.4Qd
Supply equation of bonds: P S = 520+ 0.4QS
Where P and Q denote the price and quantity of bonds and the superscripts d
and s denote the quantity supply and quantity demand for bonds respectively.
(a) What is the equilibrium price and quantity of bonds?
(b) Given the equations, plot the supply and demand curves. Be sure to clearly
specify each axis as well as demand and supply curves. Also indicate the
equilibrium price and quantity in the figure.
(c) Given your answer in part (a), what is the expected interest rate of the
discount bond?
(d) Suppose the investment opportunity is favorable and the XYZ Inc is plan-
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ning to raise funds by issuing discount bounds. Assuming everything else
held constant, how does the new decision would affect the above equilibrium. Show the new equilibrium graphically, by indicating the direction of
changes in price and quantity of bond. (Note that you do not have to give
any numerical solution, just show it graphically).
(e) What do you expect about the future interest rate of the bond if the new
decisions are implemented?
4. 2) Risk and term structure of interest rate: (7 points)
(a) In 2007-08 financial crises, the corporate sector in the USA were more vulnerable and therefore the probability of default was higher than that of corporations in Germany. Using bond market graphs as shown in class, show
the effect on the risk premium between corporate sector bond in the USA
and the comparable maturity corporate bonds in Germany. Please draw
the graph and clearly specify each axis, demand and supply schedules, the
direction of the shifts in equilibrium and the risk premium to get the full
credit.
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(b) The table below shows the current and expected future one-year interest
rates, as well as current interest rates on multi-year bonds. Assuming the
liquidity premium theory of the term structure of interest rate, use the table
below to (i) calculate the multi-year bond rate for year 1, year 2, year 3, and
year 4, and (ii) plot the resulting yield curves for the following paths of oneyear interest rates over the next four years:
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5.6
M. Iqbal Ahmed
Sample of exam questions: Intermediate Macroeconomics
Econ 510: Intermediate Macroeconomics
Final: Fall 2014
Kansas State University
Section A: Total Points ......
Sample Questions
MULTIPLE CHOICE: Choose the one alternative that best completes the statement
or answers the question.
1. If 0.5 British Pounds trade for $1, the U.S. price level equals $1 per good, and
the UK price level equals 0.25 British pound per good, then the real exchange
rate between U.K goods and U.S. goods is ...... UK good(s) per U.S. good.
(a) 2.5
(b) 0.5
(c) 1.5
(d) 2.0
Use the following to answer question 3:Exhibit: Supply Shock
2. (Exhibit: Supply Shock) Assume that the economy starts at point A and there
is a drought that severely reduces agricultural output in the economy for just
one year. In this situation, point ...... represents the short-run equilibrium immediately following the drought and point ...... represents the eventual long-run
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equilibrium.
(a) D; A
(b) B; C
(c) B; A
(d) E; D
3. If MPC = 0.80 (and there are no income taxes) when G increases by 100, then
the IS curve for any given interest rate shifts to the right by:
(a) 200.
(b) 500.
(c) 100.
(d) 400.
4. Which of the following statement is NOT TRUE
(a) The IS curve shifts when the marginal propensity to consume changes.
(b) The IS curve shifts when the tax rates changes.
(c) The IS curve shifts when the interest rate changes.
(d) The IS curve shifts when the government spending changes.
5. Starting from a trade balance, if the world interest rate falls, then, holding other
factors constant, in a small open economy the amount of domestic investment
will ....... and net exports will ........ .
(a) increase; decrease
(b) increase, not change
(c) decrease; increase
(d) increase; increase
6. If Y = K 0.4 L0.6 , then the per-worker production function is:
(a) Y/L = (K/L)0.3 .
(b) Y/L = (K/L)0.4 .
(c) Y/L = (K/L)0.6 .
(d) Y/L = F(K/L)
7. The steady-state level of capital, which is determined by ∆k= sf(k) -δk, occurs
when the change in the capital stock (∆k) equals:
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(a) the depreciation rate.
(b) 0.
(c) the population growth rate.
(d) the saving rate.
8. Assume that the money demand function is (M/P )d = 2,200 – 200r, where r is
the interest rate in percent. The money supply M is 2,000 and the price level P
is 2. If the price level is fixed and the supply of money is raised to 2,800, then
the equilibrium interest rate will:
(a) remain unchanged.
(b) drop by 1 percent.
(c) drop by 4 percent.
(d) drop by 2 percent.
Use the following to answer question 9: Exhibit: Short Run to Long Run
9. (Exhibit: Short Run to Long Run) Based on the graph, if the economy starts from
a short-term equilibrium at D, then the long-run equilibrium will be at ....... with
a ...... price level.
(a) C; higher
(b) C; lower
(c) B; lower
(d) B; higher
Use the following to answer question 10: Exhibit: Steady-State Consumption II
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10. (Exhibit: Steady-State Consumption II) The Golden Rule level of steady-state
consumption per worker is:
(a) AB
(b) BC
(c) DE
(d) AC
Section B: Total Points .......
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
Please do not just write the answer to the numerical exercises, Show all of your
work to get the full credit.
1. National Income, government expenditure multiplier and IS-LM: (5 points)
(a) In the Keynesian-cross analysis, if the consumption function is given by C
= 100 + 0.75(Y – T), and planned investment is 100, G is 100, and T is 100,
and NX is 300, then what is the equilibrium Y?
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(b) In the Keynesian-cross model, now suppose that the government planned
expenditures is increased by $200 then what is the increase in equilibrium
level of income? What is the government spending multiplier? Show your
work.
(c) If the IS curve is given by Y = 1,700 – 100r and the LM curve is given by Y
= 500 + 100r, then what are the equilibrium income and interest rate ?
2. Solow Model: (6 points)
(a) Suppose the production function of an economy is given by Y = K 0.5 L0.5 ,
then find the per-worker production function.
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(b) Suppose the per-worker production function of an economy is given by y =
k 1/2 , and the saving rate (s) is 0.2, and the depreciation rate is 0.1 What is
the steady-state ratio of capital to labor?
(c) Suppose the per-worker production function of an economy is given by y =
k 1/2 , and the saving ratio is 0.2, and the depreciation rate is 0.1. What is
the steady-state ratio of output per worker (y)?
3. IS-LM Framework: Numerical Analysis: (6 points)
Assume the following model of the economy, with the price level fixed at 1.0:
C = 0.8(Y – T)
T = 1,000
I = 800 – 20r G = 1,000
Y = C + I + G Ms/P = Md/P = 0.4Y – 40r
Ms = 1,200
(a) Write a numerical formula for the IS curve, showing Y as a function of r
alone.
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(b) Write a numerical formula for the LM curve, showing Y as a function of r
alone.
(c) What are the short-run equilibrium values of Y, r, Y – T, C, I, private saving,
public saving, and national saving? Check by ensuring that C + I + G = Y
and national saving equals I.
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Sample of homework assignments: Intermediate Microeconomics
Sample Questions
Econ 520: Intermediate Microeconomics
Homework 3
Due: February 19th
Spring 2014
Kansas State University
1. Suppose Amanda has an entertainment budget of $600 for 2014. She can only
be entertained by watching football game (F) and consuming steak (S). So she
plans to spend the money to buy tickets for football games and steaks. Suppose
the price of ticket is $30 per game and the price of a steak is $20. Amanda’s
utility function could be given as expressed as:
Total utility: U(F,S) = .2FS
(a) Find M UF and M US .
(b) Express her entertainment budget equation mathematically.
(c) Using the utility maximizing condition, determine the values of F and S
that will maximize her utility in watching football games and consuming
steaks respectively.
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(d) Determine the total utility that will be generated per unit of time for Amanda
2. The demand curve for tickets to the George Winston concert for Steve (S) and
Laura (L) are given below:
QS = 60 – 4Pc
QL =50 – 5Pc
Use the figure below to
(a) Draw both individual demand curves, indicating where they intersect both
axis. Label them QS and QL .
(b) Draw the market demand curve, indicating where it intersects both axis. If
there is a kink in the demand curve, indicate where it is located using price
and quantity. Label the market demand curve Qc .
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(c) Suppose the market price for a concert ticket is $7, at this price what is
Steve’s demand for concert tickets?
(d) In the diagram above, consider Steve’s demand curve. At price $7, denote
the area of Steve’s consumer surplus? Calculate his consumer surplus.
(e) Now consider Laura’s demand curve. At price $7, denote the area of Laura’s
consumer surplus? Calculate her consumer surplus.
(f) Who has the larger consumer surplus?
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Appendix: TEVALS & GTA professional development
certificates
See below:
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