York University
Faculty of Liberal Arts & Professional Studies
Department of Economics
Summer 2013 (S2)
COURSE # AND TITLE
AP/ECON 2450 3.0B – Intermediate Macroeconomics
COURSE WEBPAGE
https://moodle.yorku.ca/moodle/my/
NOTE: Course is run on Moodle @yorku. You log in with York ID @
PREREQUISITE/CO-REQUISITE
AP/ECON 2400 3.00 or equivalent
COURSE INSTRUCTOR CONTACT
Name:
Office:
Phone:
Office Hours:
Email:
Zafar Kayani
ATKINSON-736
416-736-2100, Ext 33501
MW 2:00-2:45PM
zkayani@yorku.ca
LECTURE TIME AND LOCATION
Lecture:
Lecture Location:
T.A.:
T.A.Office Hours:
MW 3:00 – 6:00pm
ACW-004
Stein Monteiro
TBA
WEIGHTING OF COURSE
EVALUATION
Midterm Exam
Final Exam
(July 17, 2013, Chapters 9-12, format: all MCQs)
(Chapters: 13-19, Format: T/F with explanation
and short-answer questions and problems)
50%
50%
Max. Value of (Option1: Midterm 50% + Final 50% OR Option2: Final 100%)
MISSED EXAMS/TESTS
There is no make-up for the missing midterm exam. If you miss midterm exam then I will
transfer the weight of the midterm exam to the final exam. You must notify me within
forty-eight hours after the midterm exam or before the midterm exam with your valid and
well documented excuse by in person, by email or in writing. Failing to report missing
midterm exam will cost you zero in the midterm exam. There is no make-up exam for the
missing final exam. The format of the midterm is multiple choice questions and final
exam includes T/F with explanation, short-answer and analytical problems.
GRADING SCHEME AND FEEDBACK (SENATE) POLICY
http://www.yorku.ca/secretariat/policies/document.php?document=86
COURSE DESCRIPTION
This course is a continuation of Econ-2400. The topics in this course will refine our
understanding of the economy. This course will focus on the Macroeconomics of shortrun fluctuations. The IS-LM model will be used to link goods and the money markets.
The course also looks at the micro-economic foundations of macro-economic
relationships such as the consumption, investment and money demand functions. The
Main purpose of the course is to realize the significance of theory in the policy-making
process. Therefore, a special discussion will be made to see the effects of the monetary
and fiscal policy variables on the behavior of the whole economy.
COURSE TEXT/READINGS
N. Gregory Mankiw & William Scarth, Macroeconomics. 4rd Canadian Ed., Worth
Publishers, New York 2011.
N. Gregory Mankiw & William Scarth, Study Guide to accompany Macroeconomics, 4th
Canadian Edition, Worth Publishers. (Optional)
MOODLE: is a learning tool that is used for this course. The class material: lecture
notes, assignments, grades and course related announcements will be posted on the
Moodle. It is recommended that you frequently log on to the Moodle to view the updated
posts.
ORGANIZATION OF THE COURSE
WEEK-1:
Chapter 9:
Introduction to Economic Fluctuations
9-1 Time Horizons in Macroeconomics
9-2&3 Aggregate Demand and Aggregate Supply
9-3 Stabilization Policy
Chapter 10: Aggregate Demand I: Building the IS-LM Model
10-1 The Goods Market and the IS Curve
10-2 The Money Market and the LM Curve
10-3 The Short-Run Equilibrium
WEEK-2
Chapter 11: Aggregate Demand II: Applying the IS-LM Model
11-1 Explaining Fluctuations with the IS–LM Model
11-2 IS–LM as a Theory of Aggregate Demand
Chapter 12: The Open Economy Revisited: The Mundell-Fleming Model and the
Exchange-Rate Regime
12-1 The Mundell–Fleming Model
12-2 The Small Open Economy Under Floating Exchange Rates
12-3 The Small Open Economy Under Fixed Exchange Rates
12-4 Interest-Rate Differentials
12-5 Should Exchange Rates Be Floating or Fixed?
WEEK-3
Chapter 13: Aggregate Supply and the Short-Run Trade-Off Between Inflation
and Unemployment
13-1 The Basic Theory of Aggregate Supply
13-2 Inflation, Unemployment, and the Phillips Curve
Chapter 14: A Dynamic Model of Aggregate Demand and Aggregate Supply
14-1 Elements of the Model
14-2 Solving the Dynamic Model
14-3 Using the Model
WEEK-4&5
Chapter 15: Stabilization Policy
15-1 Should Policy Be Active or Passive?
15-2 Should Policy Be Conducted by Rule or by Discretion?
Chapter 16: Government Debt and Budget Deficits
16-1 The Size of the Government Debt
16-2 Problems in Measurement
16-3 The Traditional View of Government Debt
16-4 The Ricardian View of Government Debt
WEEK-5&6
Chapter 17: Consumption
17-1 John Maynard Keynes and the Consumption Function
17-2 Irving Fisher and Inter-temporal Choice
17.3 Franco Modigliani and the Life-Cycle Hypothesis
17-4 Milton Friedman and the Permanent-Income Hypothesis
Chapter 18: Investment
18-1 Business Fixed Investment
18-2 Residential Investment
18-3 Inventory Investment
WEEK-6
Chapter 19: Money Supply and Money Demand
19-1 Money Supply
19-2 Money Demand
COURSE LEARNING OBJECTIVES
After completing this course, students should be able to:
1. To show how tools of macroeconomic theory can be used to understand key variables
of the macro economy, including inflation, Unemployment, interest rates,
consumption, investment and money demand.
2. Evaluate the effects of macroeconomic policies and shocks on the domestic economy
in the short run and in the long run.
3. Understand the short-fluctuation and stabilizing policies..
4. Understand macroeconomic models of different school of thoughts..
ACADEMIC HONESTY
LAPS as a Faculty considers breaches of the Senate Policy on Academic Honesty to be
serious matters. To quote the Senate Policy on Academic Honesty: The Policy on
Academic Honesty is an affirmation and clarification for members of the University of
the general obligation to maintain the highest standards of academic honesty. As a clear
sense of academic honesty and responsibility is fundamental to good scholarship, the
policy recognizes the general responsibility of all faculty members to foster acceptable
standards of academic conduct and of the student to be mindful of and abide by such
standards.
Suspected breaches of academic honesty will be investigated and charges shall be laid if
reasonable and probable grounds exist.
IMPORTANT COURSE INFORMATION
The Senate Committee on Curriculum & Academic Standards (CCAS) provides a
Student Information Sheet that includes:
Students should review the York Academic Honesty policy for themselves at:
York's Academic Honesty Policy & Procedures/Academic Integrity Web site
Access/Disability
Religious Observance Accommodation
Student Code of Conduct
Additional information:
Academic Accommodation for Students with Disabilities
Alternate Exam and Test Scheduling
Grading Scheme and Feedback Policy
The Senate Grading Scheme and Feedback Policy stipulates that (a) the grading scheme
(i.e. kinds and weights of assignments, essays, exams, etc.) be announced, and be
available in writing, within the first two weeks of class, and that, (b) under normal
circumstances, graded feedback worth at least 15% of the final grade for Fall, Winter or
Summer Term, and 30% for ‘full year’ courses offered in the
Fall/Winter Term be received by students in all courses prior to the final withdrawal date
from a course without receiving a grade. "20% Rule"
No examinations or tests collectively worth more than 20% of the final grade in a course
will be given during the final 14 calendar days of classes in a term. The exceptions to the
rule are classes which regularly meet Friday evenings or on Saturday and/or Sunday at
any time, and courses offered in the compressed summer terms. Final course grades may
be adjusted to conform to Program or Faculty grades distribution profiles.