Economics 303 Syllabus
Intermediate Macroeconomics
Section 3
Spring 2011
Instructor:
Office:
Phone:
e-mail:
Office hours:
Lecture Time:
Lecture Section:
Lecture Location:
Professor Joseph A. Petry
116 David Kinley Hall
333-4260
jpetry@illinois.edu
Th 10:30 – 11:30
M/W 3:30 – 4:50
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66 Library
TA Contact:
TA Office Hours:
TA e-mail:
Georgios Kyriakopoulos
See Compass for schedule
kyriako1@illinois.edu
Course Website:
https://compass.illinois.edu
Required Texts and related materials:
Aplia with etext of N. Gregory Mankiw, Macroeconomics, 7th edition.
Iclicker.
You should be reading the WSJ and/or NYT and/or Financial Times daily.
Please have a calculator with you in class (any calculator is fine).
Course Objectives: In this course, we will develop the modern theories of the
determination of the level and rate of growth of income, output, employment, and the
price level. We will discuss the implications of each theory on alternate fiscal and
monetary policies seeking to facilitate full employment, economic growth and price
stability. Since macroeconomics is an empirical discipline, we will also familiarize you
with the current macroeconomic data and its relevance. By the end of the course, you
should have a solid grounding in the basic theoretical approaches used in
macroeconomics as well as an understanding of the economic data that is commonly
analyzed.
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Course Grade:
Mid-term I
Mid-term II
Final Exam
Homework
Paper
Class Participation
20%
20%
30%
15%
10%
5%
Grading Scale: The scale used to assign letter grades in the course will be established
by the instructor at the end of the semester. A "+/-" scale will be used. The cut-offs for
letter grades and the "+/-" will also be established by the instructor at the end of the
semester. Grades will be posted on the Gradebook feature within Compass:
http://compass.illinois.edu/.
Exams: There will be three exams (two mid-terms and a final) given during the
semester. The mid-terms will be given during regularly scheduled class. The second
mid-term will only cover the material after the first mid-term.
The dates of the mid-terms will be determined during the semester. The final exam will
be comprehensive and will be given from 1:30 – 4:30 on Thursday, May 12th.
All students must bring their University Student ID with them to every exam. If you do not
have your Student ID, you may not be given the exam. As a rule, we do not offer conflict
exams. We follow the university guidelines pertaining to exceptions to this policy as
stated in the Student Code. If you believe you are eligible for a conflict exam (including
the final exam), you must notify Professor Petry and the TA in writing during the first
week of class. If you do not notify Prof. Petry in a timely fashion, you may not be eligible
for the conflict.
Homework: Homework represents an important part of this course. Aplia will be the
principal homework platform for this course. The average of your attempts will determine
your homework score. If necessary, additional homework questions will be assigned,
which will be turned in separately from Aplia. You will be assigned homework after each
chapter. Due dates will be given as the assignments are made, though generally
homework will be due the following Monday after it was assigned. No late homework will
be accepted.
Term Paper: There will be one paper during the semester. The purpose of the paper is
to analyze the current economic condition of a country of your choosing. You should
also provide recommendations for monetary and fiscal policy consistent with your
analysis. You will address your paper to the FOMC or similar policymaking body
appropriate to the country selected. While in reality, this body may be more focused on
short term stabilization policy through monetary policy, you should address monetary,
fiscal and growth policies both short-term and long-term in nature. The paper should be
comprised of two sections. The first will be the written portion and should be between
10-15 pages in length, double-spaced. You should provide a summary of your analysis
and recommendations, followed by a description of the current economic conditions of
the country, and then your policy recommendations. The second part of the paper is the
data that you compile to clarify and deepen your understanding of the current economic
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situation. This will serve as the appendix to the paper and should include at least 8 but
no more than 16 well done graphs of current economic indicators of your choosing. The
data selected, the time frame, and measurement used (e.g. year-over-year percentage
change, seasonally adjusted annualized rate) should be made so as to maximize the
insight brought to bear by that indicator. Graphs intended to depict the current
macroeconomic situation must include the most recent data available. The analysis of
economic conditions should tie closely to the graphs. It is preferable that these graphs
be formatted consistently, and printed 4 to a page. While you must write the paper
yourself, you should discuss your thoughts with others in the class, and you may create
graphs that may be shared between you. This is to encourage a higher quality of work.
Sample papers from a previous semester are available on the website. You are
encouraged to meet with the TA to discuss specific questions you might have as you
draft your paper.
The term paper is due no later than 3:30 Wednesday, April 27th. It must be turned in at
the beginning of class in person in hard-copy form. No late papers will be accepted. The
TA will be at the front of the class, and will check your name off a list to indicate we
received your paper. You are encouraged to turn in your paper early if you are so
inclined.
Lecture Materials: For most, if not all class discussions, I will prepare an outline of the
material in powerpoint which will be posted and available before class begins. The
slides, when available, will be posted by 5:00pm the night before the class period. It is
suggested that you print these slides and bring them with you to class to facilitate your
note taking during the lecture. The slides will only be a guide to our discussion and will
generally include an outline of the lecture along with some graphics to support the
exposition. You are responsible for any additional notes that you might find useful.
General Class Participation: There is no such thing as a stupid question. Dialogue is
not only strongly encouraged, it is critical to your understanding of the material.
Vocalizing your questions often helps you solidify what you do and do not understand. It
also provides your instructor important feedback on the areas in which we need to spend
more time. During lecture, I will encourage questions and I will solicit input. If I call on
you, please relax, I am NOT trying to intimidate you or embarrass you in any way--far
from it. I am trying to encourage active listening, and to keep you engaged in the course.
This will greatly assist you in learning the material. If you do not know the answer, I will
move on to another student.
Iclicker Class Participation: We will be using iclicker in lecture to further encourage
your active participation during lecture. You will be asked one or more questions during
lecture and asked to respond with your individual iclicker. Your responses will be
recorded and graded. I may ask questions that are in your lecture notes already, or
completely new questions. You will be given 0% credit for a "no answer", 75% for an
incorrect answer and 100% for a correct answer. You will then be a given a grade for
that day by averaging your scores for that day. We will drop your two lowest scores at
the end of the semester--this is to account for the occasional missed class due to illness
or a forgotten clicker. There will be no make-ups and no accommodation for forgotten
clickers.
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You will need to bring your clicker to class beginning with the first day of class. You
should register it as soon as possible by logging in to: iclicker local registration. All you
need to provide is the iclicker ID number found on the back of your clicker. If for some
reason this registration site does not work for you, try the regular iclicker registration site
located at: http://www.iclicker.com/registration/. On this site, you will be asked to provide
your last name, first name, "student ID" (despite the name "student ID", you should use
your NET-ID) and the clicker ID number (found on the back of the clicker). Your clicker
does not need to be registered before you use it in class.
Compass Discussion Board: Illinois Compass will be used to post announcements, as
well as to give you an opportunity to ask questions online about course content. Our TA
will monitor this resource. You are responsible for checking for announcements on
Compass before each class session.
Excused Absences: On occasion, an emergency may arise which prevents you from
taking an examination or otherwise performing in the course. To be considered for an
excused absence, you must provide the proper documentation explaining your absence.
This is done by providing verification through the Office of the Dean of Students. The
Office of the Dean of Students is located in the Turner Student Services Building, 610 E.
John Street, Champaign, 333-0050. To reiterate, providing a McKinley Health Center
Visit Record is NOT acceptable verification for an absence. Once the proper
documentation is provided to your TA and instructor, we will determine whether an
excused absence is warranted.
Academic Integrity: Violations of academic integrity as given in the Code on Campus
Affairs will be taken extremely seriously. Students found cheating in the course (or
helping others to cheat) will be penalized according to the Code's guidelines.
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Chapter
Part I
1
2
Part II
3
4
5
EXAM
6
Part IV
9
10
11
12
EXAM
13
Part V*
15*
16*
Epilogue
EXAM
Topic
Introduction
The Science of Macroeconomics
The Data of Macroeconomics
Classical Theory: The Economy in the Long Run
National Income: Where it Comes From and Where it Goes
Money and Inflation
The Open Economy
Midterm Exam I. Date to be Determined. Given during class time.
Unemployment
Business Cycle Theory: The Economy in the Short Run
Introduction to Economic Fluctuations
Aggregate Demand I: Building the IS-LM Model
Aggregate Demand II: Applying the IS-LM Model
The Open Economy Revisited: The Mundell-Fleming Model and the ExchangeRate Regime
Midterm Exam II. Date to be Determined. Given during class time.
Aggregate Supply and the Short-Run Tradeoff Between Inflation and
Unemployment
Macroeconomic Policy Debates
Stabilization Policy
Government Debt and Budget Deficits
What We Know, What We Don’t
Final Exam. 1:30 – 4:30, Thursday, May 12th.
th
*Material is optional, will be covered if time allows. Chapter coverage refers to Mankiw, Macroeconomics, 7 .
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