SYLLABUS
Economics 102.02-- Fall 2002
Principles of Macroeconomics
INSTRUCTOR: William Oakland
Tilton Hall 208
website: http://www.tulane.edu/~woakland/
e-mail: oakland@tulane.edu
OFFICE HOURS:
TR 2-4 PM and by appt
Course Objective:
To familiarize students with the macroeconomic environment and important
theories which try to explain it in order that they may intelligently interpret important
macroeconomic events and phenomena.
Required Texts:
Macroeconomics: Principles and Applications, 2nd Edition, Hall and Lieberman
Wall St Journal (subscription included with Hall and Lieberman text)
Student Tutorial Software for Hall and Lieberman, http://hall-lieb.swcollege.com/
Economic Report of the President, 2002 http://w3.access.gpo.gov/eop/index.html
WEBSITE:
This syllabus, outlines of lectures, trial exams, examination answer keys, and
supplementary reading can be found at the following website:
http://www.tulane.edu/~woakland/econ102/index.html
Students are strongly urged to consult this website regularly and to e-mail me regarding
any and all aspects of the course.
EXAMINATIONS:
Midterms: October 1, October 31 ERESCHEDULED TO October 8, November 14
Final:
December 16, 9-12 AM (includes 3th Midterm)
Attendance at all exams is mandatory. Unexcused absences will carry an F.
Makeups will be provided only to those with documented illness or those excused because
of serious illness or death in their immediate family. In all such cases, students must notify
the instructor prior to the starting time for the exam.
OPTIONAL RESEARCH PAPER:
An 8 to 10 page research paper on an approved topic may be used to substitute for
the mid-term with the lowest grade. A non-exclusive list of possible topics follows the class
schedule. Paper topics, outline, and bibliography must be approved by the instructor
before October 15 (no exceptions).
CLASSROOM PARTICIPATION:
Students may avail themselves of one (but not both) of the following options:
A. Students with good attendance records (no more than 3 unexcused absences)
may have their final grade upgraded by one-third-letter grade (e.g. B+ instead of
B), by taking part in a 30-minute group discussion of current macro-economic
events or issues. Students will form groups of three for this purpose. Students
are invited to form their own discussion groups, but I will form teams for those
who want to participate. Team composition must be completed by February 7.
Topics cannot be duplicative and must be approved by the instructor.
B. Students can raise their final grade average by one-third-letter grade through
good attendance (as defined above) and by exemplary classroom participation.
The instructor will serve as the sole judge of adequate participation for this
purpose.
GRADING:
Each midterm 25%, final 25%.
ATTENDANCE:
Regular attendance and participation in class are strongly recommended. In class, material and
interpretations will be provided that are not available in the readings. Also, much of the material
is cumulative in nature, so that gaps created by absences can have serious longer- term
repercussions. Finally, the classroom experience is much more fulfilling with active dialog
between students and among students and the instructor. Accordingly, students with more than 3
unexcused absences will have their final grade average reduced by one percentage point (e.g. 85
instead of 86) for each un-excused absence in excess of 3 but no more than 6. Additional
unexcused absences beyond 6 will carry a two-point penalty.
COURSE OUTLINE
(Subject to modification)
Date
Lecture
Topic
Text Assignment
Aug 29
1
Organization and Introduction
Ch.1
Sep 3
2
Introduction to Macroeconomics
Ch. 4
Sep 5,10
3,4
Measuring Economic Performance
Sep 12
5
Price and Output Indexes
Ch. 6
Sep 17,19
6,7
Classical Model
Ch. 7
Oct 1, 3
8,9
Economic Growth
Ch. 8
Oct 8
Ch. 5
Economic Report, 2002
Statistical. Appendix
FIRST MIDTERM
Oct 10
10
Booms and Recession
Ch. 9
Oct 17,22
11,12
Short-Run Keynesian Model
Ch. 10
Oct 24,26
13,14
Money and Banking
Ch. 11
Oct 31,Nov 5
15,16
Money and Interest
Ch. 12
Nov 14
SECOND MIDTERM
Nov 7, 12
18,19
Aggregate Demand and Supply
Ch. 13
Nov 19,21
20,21
Monetary Policy
Ch. 14
Dec 3,5
22
Fiscal Policy and Debt
Dec 16
(9-12 AM)
THIRD MIDTERM
FINAL EXAM (comprehensive)
Ch.15
Research Paper or Discussion Topics -- Some Possibilities
Is the nation facing a double dip recession?
What is the outlook for inflation?
Should the scheduled tax cuts through 2010 be rescinded?
What should be the conduct of monetary and fiscal policy in the current economic environment.
Productivity Resurgence”. Is it over or will it continue?
Has the Natural Rate of Unemployment tumbled below its average of the past generation?
Advantages and Pitfalls of Inflation-Indexed Government Debt.
Should taxes be increased to restore previously predicted budget surpluses in order to “save social
security”
What steps can be taken to increase savings in the United States economy?
Should the national government serve as the “employer of last resort “, thus doing away with
involuntary unemployment forever?
Should Federal Reserve independence be continued?
Should Alan Greenspan be credited for the length and duration of the recent boom and blamed
for the recent recession?
What are the macroeconomic consequences of the recent corporate finance scandals?
What can be done to improve the accuracy of price indexes?
How important is the wealth effect in shaping recent macroeconomic fluctuations?
What lessons can be drawn from the failure of the Japanese economy to restore rapid economic
growth?