Economics 120
Introductory Macroeconomics
M. Finkler
Winter 2010
Office: Briggs Hall 216
Phone: Ext. 6664
Class Meetings:
MWF 1:50 – 3:00 and R 3:10 – 4:20
Office Hours:
MWF 3:00 – 4:30
Textbooks:
Principles of Macroeconomics, N. Gregory Mankiw, Fifth Edition,
Thomson Southwestern, 2009 and registration at Aplia.com
This course provides an introduction to economic analysis with a focus on key
macroeconomic components: inflation, unemployment and economic growth. After a
section devoted to the approaches economists use to understand economic phenomena,
the second portion of the course introduces microeconomic analysis to understand prices,
quantities, and markets as well as consumer and producer responsiveness to price and
income changes. The third segment of the course addresses the definition and
measurement of key macroeconomic variables, while the fourth section builds several
macroeconomic models to assist in explaining the long term behavior of national
economies. The final two segments of the course are devoted to understanding short run
macroeconomic fluctuations and potential stabilization policies, with specific attention
paid to monetary and fiscal policies. In particular, we will address when and why
macroeconomists disagree about the use of various policies instruments and strategies,
especially in the current economic context.
The Mankiw text provides the fundamentals needed to understand aggregate
economics and policy debates. Additionally, material from the text’s website
(http://mankiwxtra.swlearning.com) and my website (www.lawrence.edu/fast/finklerm)
will be used. Furthermore, this course will take advantage of the Aplia website
(http://www.aplia.com), which provides both homework assignments and other
opportunities to actively engage in economic thinking. To register, log on to the Aplia
website, click New Student and enter the course key: SGFH-GS3P-F564.
The grade for the course will be determined as follows:
Midterm exam #1
January 28
Midterm exam #2
February 25
Final exam
March 19 at 1:30 p.m.
Homeworks
Various
20% of grade
20% of grade
30% of grade
30% of grade
(The dates for the midterm exams are tentative and may change, but any changes
will be announced at least one week prior to the exam.)
All exams are closed notes and closed book and are to be completed within the
allotted time period. Appeals to take examinations at times other than those scheduled
must be based on official sanctioned reasons.
Tentative Syllabus
Topic
I.
Introduction
a. Scope of the Course and Principles
b. Methods, Modeling, and Values
c. Trade and Comparative Advantage
II.
Microeconomic Foundations
a. Supply, Demand, and Markets
b. Elasticities
c. Governmental Intervention
No Class – Martin Luther King’s Birthday
d. Consumers, Producers and
Efficient Markets
Experiment 1
e. Taxation
f. International Trade
g. Cost of Production
Review Session
Midterm Exam #1
III.
Introduction to Macroeconomics
a. Goals and Controversies
b. GDP and other measures of
Economic welfare
c. Prices and Inflation
d. Employment and Unemployment
Experiment 2
IV.
Long Run Economic Models
a. Production and Growth
b. Saving, Investment
No Class – Reading Period
c. Financial Investment
Experiment 3
d. The Monetary System
e. Money and Inflation
Review Session
Midterm Exam #2
V.
Short Run Economic Fluctations
a. Aggregate Demand and Aggregate
Supply
b. Monetary Policy
c. Fiscal Policy
Experiments 4 and 5
d. Short Run Tradeoffs
VI.
Debates about Macroeconomic Policy
Review Session
Final Exam
Date
Reading
January 4
January 6
January 7, 8
Chapter 1
Chapter 2
Chapter 3
January 11, 13
January 14
January 15
January 18
January 20
Chapter 4
Chapter 5
Chapter 6
January 21
January 21
January 22
January 25
January 27
January 28
January 29
January 29
Chapter 7
Chapter 8
Chapter 9
Handout
Chapter 10
February 1
February 3, 4
February 4
Chapter 11
Chapter 15
Feb 5, 8
February 18
February 11 and 12
February 15
February 17
February 17, 18
February 19, 22
February 24
February 25
Chapter 12
Chapter 13
Chapter 14
Chapter 16
Chapter 17
February 26
Chapter 20
March 1
March 1
Chapter 21
March 3
Chapter 21
March 4
March 5
Chapter 22
March 8, 10, 11
Chapter 23
March 12
1:30 P.M., March 19th