Economics 102
Principles of Macroeconomics
Summer 2002
Instructor:
David Alley
174C Heady
Office Phone: 294-5258
dalley@iastate.edu
Teaching Assistant:
Oleg Yerokhin
326 Curtiss
Office Phone: 294-4864
yerokhin@iastate.edu
Office Hours:
M-F 9:50-11:30(Tentative) 174C Heady
Evaluation:
Class Examinations: There will be two in-class exams. The exams will be held
June 6, and June 28. There will be no make-up exams. You may, however, receive
an excused absence in the case of medical or family emergencies. This must be
addressed before the exam. If you do receive an excused absence, your grade will
depend only upon the other exam and the final.
Final Examination: The final exam will be held the last day of class, July 12.
Quizzes: There will be six quizzes given throughout the session. Each quiz will be
worth 15 points. Only the best 5 scores will be counted. There will be no make-up
quizzes.
Problem Sets: There will be 5 problem sets throughout the session. Each problem
set will be worth 15 points. No late work will be accepted.
Total Possible
300 points
150 points
75 points
75 points
600 points
Text:
Baumol, W. J. and A. S. Blinder. Macroeconomics, Principles and Policy, Eighth
Edition. Fort Worth: Harcourt College Publishers, 2001.
Study Guide:
While the study guide that accompanies the Baumol and Blinder text is not
required for this course, students are encouraged to work through the problems in the
study guide in order to have some experience with the material.
Resources on the Web:
The class homepage is http://www.econ.iastate.edu/classes/econ102/alley. This
page will contain the syllabus, copies of the problem sets, and other materials.
The book homepage is http://www.harcourtcollege.com/econ/baumol/. This site
contains some interesting links and online learning resources.
Reading List (tentative):
Below is the tentative reading list from the Baumol and Blinder text. I will announce the reading
assignments in class as well as on the course website as we go. I may also supplement this reading list with
short current event readings that I will distribute in class.
Part I:
The United States Economy (and some foreign stuff, too)
Review of Supply and Demand
Pay particular attention to this chapter if you have not taken a course
in microeconomics. I will lecture only on the highlights.
Scarcity, Choice, and the PPF
Chapter 3
Chapter 5
Chapter 4
Part II:
Macroeconomics: Growth and Cycles
Macroeconomics: Unemployment and Interest Rates
(Don’t forget the appendix.)
Aggregate Demand, National Income, Consumption, and Investment
The Multiplier
Aggregate Supply, Equilibrium
Fiscal Policy
The Phillips Curve
Chapter 6
Chapter 7
Chapters 8 and 9
Chapter 10
Chapter 11
Chapter 12
Chapter 17
Part III:
Money and Banking
Monetary Policy (Alan who?)
The Monetary Policy Debate
Deficit and Debt
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Part IV:
International Trade
Selected Topics on the International Monetary System and the Role
of the United States
(I will announce what we are going to cover depending on how we
are doing for time.)
Chapter 18
Chapters 19 and 20