920:103g: INTERMEDIATE MACROECONOMIC THEORY
Fall 2008
Instructor: Ken McCormick (Office: CBB 213 Phone: 3-6051)
Office Hours: M-W-F 1:00 - 2:00 and by appointment
E-mail: kenneth.mccormick@uni.edu
Web-page: http://www.cba.uni.edu/mccormick/
Prerequisites: 92:053 and 92:054 or equivalents
Required Books: 1. Abel, Bernanke & Croushore, Macroeconomics, 6th
edition
2. Collier, The Bottom Billion
Course Outline and Reading List:
TOPIC
READING ASSIGNMENT IN A & B
I.
Introduction
Chapter 1
II. National Income Accounting
Chapter 2
(No Lectures; Take-Home Quiz)
III. Production & Employment in
Chapter 3
the Long Run
IV. Consumption, Saving &
Chapter 4
Investment
V. Saving & Investment in an
Chapter 5
Open Economy
VI. Growth
Chapter 6
VII. The Asset Market, Money
Chapter 7
and Prices
VIII. Business Cycle History
Chapter 8
(No Lectures; Take-Home Quiz)
(Omit pages 302-306)
IX. IS-LM in a Closed Economy
Chapter 9
(Omit pages 336-343)
XI. Keynesian Macroeconomics
Chapter 11
XIII. IS-LM in an Open Economy
Chapter 13
XIV. The Consumption Function
None
(Time Permitting)
Purpose of the course:
The purpose of the course is twofold:
1. To teach you some macroeconomic theory, and
2. To make you more comfortable working with economic models.
Exams:
There will be four examinations, each worth 100 points. The exams will
each consist of 33 multiple choice questions. You are allowed one page
of notes at each exam. The dates for the exams will be announced in
class as the semester progresses.
Quizzes:
There will be four quizzes, two of which will be take-home. The takehome quizzes will be worth 30 points each. The two in-class quizzes will
be worth 20 points each. The quizzes will be of the problem/essay
variety. The dates for the quizzes will be announced in class as the
semester progresses.
Paper:
You are required to write a 5 – 10 page book report on Paul Collier’s The
Bottom Billion. Your report should include answers to the following
questions:
1. Why does it matter to us if there are poor countries that do not
develop?
2. What are the main reasons that countries fail to develop?
3. According to Collier, what needs to be done?
4. Why aren’t these things done now?
5. What does Collier mean by “headless hearts” and “useful idiots?”
6. How does “globalization” fit into the picture?
7. What do you think about Collier’s book?
Employers, graduate schools, and law schools tell us over and over that
good writing skills are valuable. It is therefore important to practice your
writing. Good papers generally go through several drafts. At a
minimum, you are expected to proof-read your paper for errors in
spelling, punctuation and grammar. A poorly written paper will cause
the score on your paper to fall precipitously. The paper is worth 100
points.
Your paper is due Monday, December 1. That means you have three
months to write it, so no late papers will be accepted. Period.
Homework:
You are expected to answer the following homework questions at the end
of each chapter. The homework will not be collected, but you will be
provided with the answers to all homework questions. Roughly half of
the exam questions will be derived from homework questions.
Chapter
Review Questions
3
4
5
6
7
9
11
13
1,2,3,4,12,13,14,15
1,2,3,4,6,7,8,9
1,2,5,8,10
1,5,6,7
2,4,6,9
1,2,3,5
1,2,3,4,6,10
1,2,3,4,5,6,7,8
Numerical
Problems
3
5
1
1,2,5,6
2a,2b,7a
1,2,3a
1,3
4a,4b
Analytical
Problems
2
1
5
1,2
1c,4
3
1
Grades:
At the end of the course, the total number of points you have earned will
be divided by the total number of points possible. The result will then be
applied to the following scale:
.90 - 1.00
.80 - .89
.70 - .79
.60 - .69
< .60
A
B
C
D
F
A plus or a minus will be added to the letter grade of people close to the
boundaries.
Some friendly advice:
1.
Attend class regularly. Other peoples' notes are better than
nothing, but they are not a substitute for being in class. Time
spent (attentively) in class may save you from spending many
hours struggling with a new concept on your own.
2.
Read the book. You are responsible for all of the material
presented in the textbook (except for appendices), whether we talk
about it in class or not.
3.
4.
5.
Keep up. The best way to learn the material is a little at a time. If
you wait until just before an exam to study you are not likely to do
well. Besides, if you wait until the last minute to study, you may
not have time to get your questions answered.
Do the homework. The homework assignments are a good way to
gauge your understanding of the material. Don't wait until the last
minute to do them! Leave yourself time to get help on those with
which you have difficulty.
Get help when you need it. If the explanations given in class and
in the book are not sufficient, DO NOT HESITATE to come in for
help. However, remember that I CANNOT LEARN THE MATERIAL
FOR YOU. As the Chinese proverb says, "Teachers open the door,
but you must enter by yourself."
The Americans with Disabilities Act
"The Americans with Disabilities Act of 1990 provides protection from
unlawful discrimination for qualified individuals with disabilities.
Students requesting instructional accommodations due to disabilities
must arrange for such accommodation through the Office of Disability
Services. The ODS is located at 103 Student Health Center, and the
phone number is 273-2676."