http://www-personal.umd.umich.edu/~mtwomey/econhelp/201files/201syllabus.docx
ECON 201
Introductory Macroeconomics Fall, 2014
Prof. Michael Twomey
2290 SSB
Tel. 313-593-5176 (office); 313-406-4017 (home: 9:00 am – 9:00 pm, please)
Office Hours: TR 11:00-12:00, 2:00-2:30.
Anytime by appointment
E-mail: mtwomey@umd.umich.edu
web: http://www-personal.umd.umich.edu/~mtwomey
The textbook for this course is Krugman and Wells Macroeconomics (3rd ed., Worth Publishers), and is
available in the bookstore (don’t get one with the Sapling or Aplia program!). The library has a copy on
reserve, for emergencies. The second edition is a marginally satisfactory option. Click here for access to the
publisher’s web-site, with information on purchasing an electronic version of the text, and possible direct
purchase of the book. This text has an extensive set of study helps accessible on its web-site. A Study Guide
is available for purchase, and copies are also on reserve in the library. Course related files of the old exams,
the extra credit list, and the professor’s lectures – both in pptx format or in docx – are available at the above
homepage, as well as on the course page in the new system, Canvas.
Your grade will be determined by four exams (including the final, which is not cumulative). The exams will
be half multiple choice and half short answer questions. All tests are graded on a curve, with the median
assigned a C+ (2.4). See the attached sheet for Extra Credit. Copies of previous terms’ first, second, third,
and fourth exams are available as study sheets. Note, however, that the format and coverage for those exams
may differ from those for this course, and that for practice multiple choice questions you will have to go to
the Study Guide. Students who are not able to make an exam are required to inform the professor in advancenote the telephone numbers listed above. You are reminded that page 3 of the Fall Schedule of Classes lists a
number of important dates about adding and dropping classes, such as Nov. 4 as the final day to drop a
course (consult that document for specifics). Students are welcome to record the lectures; common courtesy
requires that the professor be informed in advance. The Learning Center (313-593-5425) provides free
services of student tutors. Please turn off cellular phones, pagers, etc. Bring a small calculator to the exams cell phones are not permitted during exams. Cheating will result in flunking the course.
A tentative schedule follows. No chapter appendix will be covered. Exam dates are approximate.
WEEK OF:
CHAPTER
TOPIC
Sept. 4
Sept. 9
Sept. 16
Sept. 23
Sept. 30
Oct. 7
Oct. 14
Oct. 21
Oct. 28
Nov. 4
Nov. 11
Nov. 18
Nov. 25
Dec. 2
Dec. 9
1, 2
3, 4
4, 5
Exam, 6
7, 8
9, 10
10, Exam
11 (skip 326-331)
12 (skip 343-344)
13 + p. 538
Exam
14
15 + pp. 532-34
19
16 (pp. 481-489)
Introduction
Supply and Demand
Government Interventions, Foreign Trade
Business Cycles
National Accounts
Unemployment, Long Term Growth
Savings-Investment/Loanable Funds
Income-Expenditure Model
Aggregate Demand and Ag. Supply
Fiscal Policy, Laffer Curve
Money and Banking
Monetary Policy
International Economics
Phillips Curve
FINAL EXAM: scheduled for Tuesday, Dec. 16 at 9:00 am.
FURTHER COMMENTS ABOUT STUDYING:
For this course, the lectures in class attempt to cover nearly everything in the text. Nevertheless, they never do, and,
moreover, the emphasis in the class lectures is inevitably different from that in the text. Students often ask if they
should study the text or the notes, and the answer is, study both, as the rules are that anything in the book is fair game
for an exam, unless it is explicitly excluded. Another valid question is whether the exams are cumulative--the answer is
that each exam only covers the chapters since the previous exam, but as the textbook builds on previous material, the
subject is cumulative. In a course as intensive as this, you should glance at the book before the lecture, so that you can
have a general idea of the subject matter. This is especially important for those who have little previous exposure to
economic discussions. As the lectures follow the book closely, it helps to bring the text to class. The problems and
exercises in the textbook are good for review; some might even appear on exams. My sense is that most students gain
by studying--or at least reviewing for exams--in groups, as different people pick up different things from the lectures
and textbook. Bring a pencil and calculator to quizzes and exams. Remember that the older exams correspond to
different textbooks, where some of the material appeared in a different order. Your questions and comments are always
welcome, in or out of class.
Currently registered students are entitled to free access to the UM-D computer labs and e-mail systems. To get an e-mail
account, present your valid University photo ID at the ITS Accounts Office in the Computer Wing, and fill out the
application form there with the assistants. For simple instructions on how to have the messages to your UM-D email
address forwarded to another carrier, click forwarding.
You are strongly encouraged to follow the economic news in the media. The Wall Street Journal, The New York Times
and The Financial Times are the best daily newspapers, and can also be accessed for free on-line via the UM-D library.
For further, optional, reading on economics and current policy issues, there are a few books of short articles on reserve
in the library, for Econ 201. In addition, you might look at the following journals (online, or 2nd floor of the library):
Challenge, Economic Outlook USA, or (advanced) Brookings Papers on Economic Activity; people looking for a leftist
alternative should check out Monthly Review and Dollars and Sense. The Economist is a weekly magazine with lots of
economics news and views; Fortune and Business Week also provide a very business-oriented perspective - the latter
features weekly guest columns by noted economists. There are several important economists whose short articles and
opinion pieces/blogs are accessible to undergraduates. Try: Gregory Mankiw, Paul Krugman, Brad DeLong, Joseph
Stiglitz, John Taylor, Mike Thoma, Nouriel Roubini, Don Boudreau, Hamilton/Chinn, and Freakonomics
Finally, for comments about the major, click economics. For advice on applying to graduate school in any field, click
grad school, and click here for law school.
Students who wish to receive their final grade by mail should give me a stamped, self addressed envelope or postcard,
near the end of the course or at the final exam--please do not phone or e-mail me to ask about final grades, as these
requests will not even be answered. You can always pick up your final exam in my office after the term is finished. By
the way, the phone number to check if the campus has been closed due to bad weather is 313-436-9157.
Parts of the Chapters to be skipped: all appendices; Chapter 2, pp. 33-36, and all circular flow diagrams; Chapter 3,
substitutes and complements (p. 71), and ‘ normal’ and ‘inferior’ goods (p. 72); Chapter 4, the technical aspects of
comparative advantage, and producer/consumer surplus (pp. 133-34, Figures 5.5-5.9 and 5.11); Chapter 9 the ’rule of
70’ page 244 and diminishing returns to capital p. 232; Chapter 11 skip the accelerator p. 323, and ‘the Keynesian cross
pp. 326-331;’ Chapter 12, why the AD curve has a slope pages 343-44, and Fig. 12-2 and 12-3; Chapter 16, plan to go
up to p. 490; Chapters 17 and 18 we will skip most of the chapters; in Chapter 18 skip Purchasing Power Parity.
CONFLICTS ON EXAM DATES: Students who have religious reasons for not taking an exam on a particular date
should notify the professor, in advance. Alternative arrangements will be made.
STUDENTS WITH DISABILITIES: The University will make reasonable accommodations for persons with
documented disabilities. Students need to register with Disability Resource Services every semester they are taking
classes. Their phone number is 313-593-5430; the address is 2157 University Center.
http://www-personal.umd.umich.edu/~mtwomey/econhelp/201files/201syllabus.docx
It may be helpful if we share the goals of the economists and their classes:
1.
Learn the fundamental concepts, theories, and methodology of economics
2.
Develop ability to integrate and apply economic concepts and models to the analysis of problems and to
the development and evaluation of economic policy.
3.
Develop ability to collect appropriate data and conduct quantitative analyses in order to measure
economic phenomena, test economic theories, evaluate policies, and make decisions.
4.
Develop ability to effectively communicate in written and oral form.
5.
Develop ability to collaborate and work with others
6.
Develop the intellectual skills for and commitment to personal and professional growth and lifelong
learning.