Economics 226: Macro-Economic Analysis (Mathematics Emphasis)
Professor: Harvey Gram
Lecture: Monday and Wednesday, 9:25-10:40 in King Hall 202
Office Hours: PH 300H, Monday and Wednesday, 11:00-12:15 and by appointment
E-mail: Harvey.Gram@qc.cuny.edu
COURSE CREDIT CANNOT BE RECEIVED FOR BOTH ECON 206 AND 226.
1. Course Description
This intermediate level course in macroeconomic theory and policy has prerequisites:
Economics 101 and 102, and Mathematics 132 (or its equivalent). The goal of the course
is to provide the student with an understanding of the current state of thinking in
macroeconomic theory in order to provide a basis for appreciating the policy problems to
be faced in trying to improve the overall performance of the economy.
2. Text
Olivier Blanchard, Macroeconomics, 5th edition, Pearson/Prentice Hall, 2009.
3. Class web site
Use www.cuny.edu to access BlackBoard where you will find all course materials.
4. Assignments and Quizzes
Questions for each lecture will be posted on Blackboard and should be used to guide your
reading. Some Questions will be used as Assignments posted on Blackboard.
5. Class participation
Class attendance is required. Some students are more eager than others to speak out in
class, but everyone is encouraged to do so. Class participation builds confidence.
6. Examinations
There will be two mid-terms and a final examination. Each examination builds on earlier
material. If your grade improves on the second midterm, then your first midterm will
receive less weight in calculating an average grade for the course. The same applies to
the final examination.
COURSE OUTLINE
(1) Introduction
- Macroeconomic indicators
- Index Numbers
- International Comparisons
- National Income Accounts: Production, Income, Expenditure
(2) A Short Run Macroeconomic Model
- The Goods Market: Basic Multiplier
- The Financial Markets: Money, Bonds, Bank Loans
- Integration of Goods and Financial Markets: IS/LM Multiplier
- Fiscal and Monetary Policy Effects on Aggregate Demand
FIRST MID-TERM EXAMINATION: CHAPTERS 1-5
(3) A Medium Run Macroeconomic Model
- The Labor Market
- The Aggregate Supply Curve
- The Aggregate Demand Curve
- Using the AS-AD Model to understand macroeconomic policy
- The Phillips Curve and the “Natural” Rate of Unemployment
- Okun’s Law, The Phillips Curve and Disinflation
SECOND MID-TERM EXAMINATION: CHAPTERS 6-9
(4) A Long Run Macroeconomic Model
- The Facts of Growth
- Capital Accumulation
- Technological Progress
- Productivity and Real Wages
FINAL EXAMINATION: CHAPTERS 1-13