ECO 346-­‐01: INTERMEDIATE MACROECONOMIC THEORY SPRING 2015 CLASS TIMES & LOCATION
Mondays, Wednesdays, & Fridays 10:00 am – 10:50 am
202 Bryan Building
INSTRUCTOR INFORMATION
Dennis Patrick Leyden – 460 Bryan Building, dpleyden@uncg.edu, 256-8558.
Office hours: Almost any time during normal working hours, M-F is possible. I am available for
individual and group meetings. Email is the most reliable way to contact me outside of class.
FOR WHOM PLANNED
This course is intended primarily for upper-level undergraduate economics majors. However, it
is open to all students who are interested in a deeper understanding of macroeconomics than is
provided in a principles of macroeconomics course.
ACADEMIC CREDIT
3 semester hours of academic credit.
PREREQUISITE
ECO 202: Principles of Microeconomics
CATALOG DESCRIPTION
Intermediate level analysis of national income and employment with attention to fiscal and
monetary policy, theories of business fluctuations, and economic growth.
LEARNING OBJECTIVES
Using short-run macroeconomic fluctuation theories of closed and open economies and long-term
growth theories, students who successfully complete this course will learn how macroeconomists
construct and use theories to design macroeconomic policy and what the relative strengths and
weaknesses of those theories (and the underlying theories) are. Students who successfully complete
this course will be able to:
• Describe the central questions in macroeconomics.
• Describe the essential structure of each of the theories covered.
• Explain the mechanics of each of the theories covered.
• Explain the implications of each theory for public policy.
DEPARTMENT OF ECONOMICS, BRYAN SCHOOL OF BUSINESS & ECONOMICS
THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO
SYLLABUS
ECO 346-01: TOPICS IN PUBLIC POLICY
FALL 2014
PAGE 2
READINGS & OTHER SOURCE MATERIAL
Required readings and non-credit study assignments for this course are taken from the book:
• Froyen, R. T. (2013). Macroeconomics: Theories and policies, 10th edition. Boston, MA:
Pearson.
There are also are a number of other materials that are required for this course and that are
available online:
• Butler, E. (2013, February 18). What would Hayek do to sort out this mess? [Audio file plus
pdf file of slides used]. Retrieved from
http://www.lse.ac.uk/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/play
er.aspx?id=1756.
• Deaton, A. (2014, December 11). Papal infallibility? Global poverty, and the mystery of
global inequality. Retrieved from
http://www.lse.ac.uk/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/play
er.aspx?id=2765.
• Papola, J., & Roberts, R. (2010, January 23). Fear the boom and bust [Video file]. Retrieved
from http://youtu.be/d0nERTFo-Sk. To sing along, check out the lyrics at
http://econstories.tv/fear-the-boom-and-bust/.
• Papola, J., & Roberts, R. (2010a, October 24). Part I: “Fear the Boom” – The Mises/Hayek
theory of boom and bust. [Video file]. Retrieved from http://youtu.be/LPZvKv7uljc .
• Papola, J., & Roberts, R. (2010b, October 24). Part II: “The Bust” – Restructuring, recovery
and unemployment. [Video file]. Retrieved from http://youtu.be/iRBdAmerMT0 .
• Papola, J., & Roberts, R. (2010c, October 24). Part III: “The Cluster of Errors” – Why
entrepreneurs are confused [Video file]. Retrieved from http://youtu.be/iBtzBb6rV1w.
CONDUCT OF THE COURSE
This course is structured around the study of a collection of macroeconomic theories. For each
theory, coverage begins with an initial set of lectures that explain and explicate the theory.
Remaining class time is then devoted to question-and-answer sessions, in-class quizzes, and
applying the course material. For those students who want formal exercises to help with the
study of course material, keys will be posted of all end-of-chapter Review Questions and
Problems after the coverage of each chapter is completed in class. Examination keys will also be
provided as additional study aids.
FACULTY AND STUDENT GUIDELINES
Each student is required to sign the Academic Integrity Policy on all major work submitted for the
course. Refer to UNCG Undergraduate Bulletin/Graduate Bulletin or consult
http://sa.uncg.edu/dean/academic-integrity/. In addition, the Bryan School Faculty Assembly and
the Bryan School Student Advisory Council have adopted a set of Faculty and Student Guidelines
that defines expected behavior for both faculty and student. For more information about these
Guidelines consult http://bae.uncg.edu/students-resources/.
DEPARTMENT OF ECONOMICS, BRYAN SCHOOL OF BUSINESS & ECONOMICS
THE UNIVERSITY OF NORTH CAROLINA AT GREENBORO
SYLLABUS
ECO 346-01: TOPICS IN PUBLIC POLICY
FALL 2014
PAGE 3
EVALUATION & GRADING
Calculation of Course Grade
Grading in this course is based on 3 cumulative examinations and a number of in-class quizzes.
The course average will be calculated by averaging all examination grades and in-class quizzes
using the following weights:
• 1st Examination* .................................................................................................................... 15%
• 2nd Examination* ................................................................................................................... 30%
• Final Examination ................................................................................................................. 45%
• In-class Quizzes (lowest 3 dropped) ....................................................................................... 10%
* This examination can be dropped. See below for details.
Grading Scale
Exam grades and the course grade are expressed using a 100-point scale with each letter grade
range being 10 points (the top third of each grade range being noted by a plus, and the bottom
third of each grade range being noted by a minus). The preliminary and final course averages
will be calculated to two decimal places. The final course average will then be used to determine
the letter grade for the course; no rounding will take place beyond what is used to carry out the
calculations to two decimal places. Thus, for example, a course grade between 80.00 and 83.33
(inclusive) will result in a course letter grade of B–, a course grade between 83.34 and 86.66
(inclusive) will result in a course letter grade of B, and a course grade between 86.67 and 89.99
(inclusive) will result in a course letter grade of B+.
Examinations
DROPS
• The 1st examination grade will be dropped and replaced by the 2nd examination grade or the
final examination grade if one of those grades is higher. If both the 2nd examination grade and
the final examination grade are higher, the 1st examination grade will be replaced by the 2nd
examination grade if the 2nd examination grade is higher than the final examination grade and
will be replaced by the final examination grade if the final examination grade is higher than the
2nd examination grade.
• The 2nd examination grade will be replaced by the final examination grade if the final
examination grade is higher than the 2nd examination grade.
PROCESS
• No student will be permitted to start the 1st or 2nd examination more than 19 minutes after the
start of those examinations. No student will be permitted to start the final examination more
than 29 minutes after the start of that examination.
• No student will be permitted to temporarily leave the examination room until they have
completed their examination. If a student does leave the room before turning in the
examination, that examination will be considered to have been completed, and it will be
collected at that time.
• No electronic devices of any kind are permitted during the examination.
DEPARTMENT OF ECONOMICS, BRYAN SCHOOL OF BUSINESS & ECONOMICS
THE UNIVERSITY OF NORTH CAROLINA AT GREENBORO
SYLLABUS
ECO 346-01: TOPICS IN PUBLIC POLICY
FALL 2014
PAGE 4
MAKE-UPS
• There are no make-ups for the 1st and 2nd examinations.
• For the final examination:
° Students with three or more final examinations in a 24-hour period may apply to the
University Registrar's Office for permission to change their examination schedules. All
requests for changes in examinations must be filed with the University Registrar's Office
before Reading Day. The usual policy is to change the middle examination.
° Students who due to extreme circumstances that are beyond their control cannot take the
final examination at the scheduled time and date may petition to have the final
examination rescheduled. In such circumstances, students should contact the instructor
as soon as possible and provide tangible evidence to support their claim. Examples of
situations that are generally not justifications for rescheduling the final examination
include: conflicts with other courses that do not follow the prescribed final examination
schedule, conflicts with work schedules, and conflicts with end-of-semester travel
arrangements. Be aware that any makeup final examination may take a different format
than the regularly scheduled final examination.
In-class Quizzes
PROCESS
• In-class quizzes are handed out and completed in class.
• Late submissions are not accepted for any reason, nor are makeups given.
GRADING
• Each in-class quiz is scored on 3-point scale.
• At the end of the semester, a mean quiz score is calculated for each student after dropping the
lowest 2 scores. That mean quiz score is then curved using the Normal distribution to the 100point scale described above.
• Individual quiz scores are based on the following rubric:
• 0 – Not turned in.
• 1 – Less than satisfactory work.
• 2 – The assignment is fully done, and work is generally satisfactory though some
mistakes may be present.
• 3 – The assignment is fully done, and work is completely satisfactory with no mistakes.
Work is especially meritorious.
DEPARTMENT OF ECONOMICS, BRYAN SCHOOL OF BUSINESS & ECONOMICS
THE UNIVERSITY OF NORTH CAROLINA AT GREENBORO
SYLLABUS
ECO 346-01: TOPICS IN PUBLIC POLICY
FALL 2014
PAGE 5
TOPICAL OUTLINE & CALENDAR
The calendar below provides an outline of course topics, associated readings, examination dates,
and extra-credit assignment due dates. In general, if the University cancels class, check the course
Canvas site for rescheduling information. Note however that if the University cancels class the
day of a mid-term examination, the mid-term examination will take place at the next class
meeting time.
INTRODUCTION ...................................................................................................................... 12 JAN • Readings: Froyen, Chapter 1 MEASUREMENT ...................................................................................................................... 14 JAN • Readings: Froyen, Chapter 2 CLASSICAL THEORY ................................................................................... 16, 21, 23, 26, 28, 30 JAN • Readings: Froyen, Chapters 3 & 4 EXAMINATION 1 ..................................................................................................................... 2 FEB KEYNESIAN THEORY – KEYNESIAN CROSS DIAGRAM .................................................. 4, 6, 9, 11 FEB • Readings: Froyen, Chapter 5 KEYNESIAN THEORY – IS-­‐LM DIAGRAM ................................................................. 13, 16, 18, 20 FEB • Readings: Froyen, Chapter 6 KEYNESIAN THEORY – POLICY EFFECTS USING THE IS-­‐LM DIAGRAM ............ 23, 25, 27 FEB; 2 MAR • Readings: Froyen, Chapter 7 KEYNESIAN THEORY -­‐ AGGREGATE SUPPLY & DEMAND DIAGRAM ........................ 4, 6, 16, 18 MAR • Readings: Froyen, Chapter 8 KEYNESIAN THEORY – PHILLIPS CURVE ............................................................... 20, 23, 25, 27 MAR • Readings: Froyen, Chapter 10 EXAMINATION 2 ................................................................................................................... 30 MAR MONETARY & FISCAL POLICY IN OPEN ECONOMIES ............................................ 1, 6, 8, 10, 13 APR • Readings: Froyen, Chapter 15 GROWTH IN THE LONG RUN ................................................................................ 15, 17, 20, 22 APR • Readings: • Froyen, Chapter 20 •
Deaton (2014, December 11)
BUSINESS CYCLE THEORIES ........................................................................................ 24, 27, 28 APR • Readings: • Butler (2013, February 18) • Papola & Roberts (2010, January 23) • Papola & Roberts (2010a, October 24) • Papola & Roberts (2010b, October 24) • Papola & Roberts (2010c, October 24) FINAL EXAMINATION .......................................................................... MON 12:00-­‐3:00 PM, 4 MAY DEPARTMENT OF ECONOMICS, BRYAN SCHOOL OF BUSINESS & ECONOMICS
THE UNIVERSITY OF NORTH CAROLINA AT GREENBORO