Syllabus for Econ 302: Intermediate Macro (Tesfatsion)
Latest Course Offering: Fall 1996, TTH 2-3:25 P.M.
Syllabus Last Updated: 10 December 1996
Course Instructor:
Professor Leigh Tesfatsion
- Address:
- 375 Heady Hall
Department of Economics
Iowa State University
Ames, Iowa 50011-1070
Telephone: (515) 294-0138
Email:
tesfatsi@iastate.edu
WWW: https://faculty.sites.iastate.edu/tesfatsi/
F96 Office Hours: MW 1-3:30 P.M. and by appointment
- Econ 302 Home Page Address:
https://faculty.sites.iastate.edu/tesfatsi/archive/econ302/tesfatsion/
- Credits: 3 credits
- Meeting Time/Place: Tues/Thurs, 2-3:25, Heady 274
- Teaching Assistant:
- Cai Fang
- Office: 181 Heady Hall
- Office Hours: Tues 12-2 and Thur 1-2
- Office Telephone: (515) 294-3822
- Email: fcai@iastate.edu
- Prerequisites: Econ 101 and 102 (Principles of micro and
macro); Math 151 or 165 (basic facility with graphs, algebraic
equations, and intermediate calculus).
- Required Text Materials (Bookstore):
- Textbook:
- R. Hall and J. Taylor, Macroeconomics, Fourth Edition,
W. W. Norton, 1993, with accompanying MacroSolve diskette
for IBM compatibles.
- Supplementary Study Guide:
- D. Papell, Study Guide for Hall and Taylor's
Macroeconomics, Fourth Edition, W. W. Norton, 1993.
- Economic Report of the President, February 1996
- Grading: Grades for Econ 302 will be based on one
midterm exam (60 points), quizzes (approximately 40 points), one final
exam (100 points), and home exercises (approximately 50 points).
Contributions to class discussion will count for extra credit in case
of a borderline grade. Please see below for further details about
the midterm exam, the quizzes, and the final exam.
COURSE OBJECTIVES:
Since the early nineteen seventies, macroeconomic theory has been in
a state of great flux. In addition to traditional classical and
Keynesian IS-LM models, macroeconomists are now also developing a
variety of new models based more explicitly on the micro behavior of
individual consumers, firms, and financial intermediaries.
Robert Hall and John Taylor, two respected economists, have
constructed a macro model incorporating both traditional Keynesian
thinking and frontier research on expectation formation, financial
intermediation, wage contracts, and open-economy linkages. They
develop this model in their textbook Macroeconomics, which has
rapidly become a leading textbook in the United States for
intermediate macro courses. As noted above, this textbook is the
basic required textbook for Econ 302.
In the process of developing their model, Hall and Taylor introduce
a variety of tools and concepts currently regarded as essential for
any careful macroeconomic analysis. In Econ 302 we will consider
carefully the advantages and limitations of these tools and
concepts. In particular, using the Economic Report of the
President in conjunction with the Hall and Taylor text, we will
investigate the degree to which the Hall and Taylor model captures
well-documented empirical regularities in observed economic
behavior and the extent to which it provides a useful thought tool
for analyzing major economic policy issues currently facing the
United States and other industrialized nations.
EXERCISES, QUIZZES, AND EXAMS:
EXERCISES: Assigned exercise sets will consist of a
selection of exercises similar to the exercises found at the end of
each Hall and Taylor chapter; these exercises will be graded by the
teaching assistant. Practice exercises can be found in the Papell
study guide, and exercises from the Econ 302 course offered in S96
have been made available as practice exercises on the Econ 302 home
page. These practice exercises should help students prepare for
undertaking the assigned exercise sets. Students are strongly urged
to work through these practice exercises in a timely manner. Please
note that each assigned exercise set must be turned in at the
beginning of class on the specified due date. Late assignments will
not be accepted--no exceptions!
QUIZZES: Four short in-class quizzes (10 points each) will
be given during the semester to give students (and the instructor!)
timely signals regarding the students' preparation and understanding
of course materials. The quizzes will be given during the FIRST
fifteen minutes of class on the following dates: September 19; October
17; October 31; and November 14. The quizzes will be graded by the
instructor.
MIDTERM EXAM:
- The midterm exam is scheduled for Thursday, October
3, during the regular class meeting (2-3:25 P.M.) in the regular
class meeting room Heady 274.
- Students will be required to show an official photo
identification card (e.g, an ISU student ID card)
prior to turning in their midterm and final exams.
- In addition to an official photo ID, students will need to
bring pens or pencils (and possibly erasers!) to the exam room.
Calculators will not be needed. Also, test booklets will be
provided at the beginning of the midterm exam, so students will not
need to bring paper pads, blue books, etc. to the exam.
- The midterm exam will be an in-class closed-book exam covering
all class lectures, required class lecture notes, required reading
assignments, and required exercise assignments through the date of
the exam. It will consist of a selection of questions testing each
student's ability to think through macroeconomic issues using basic
economic tools and concepts as aids.
- Please see below under "Important Additional Information"
for my policies concerning missed exams and cheating on
exams.
FINAL EXAM:
- According to the ISU Bulletin, the final exam for Econ 302
is tentatively scheduled to be held on Tuesday, December 17,
12:00-2:00 P.M., in the regular class meeting room Heady 274.
[Students should be seated and ready to take the exam promptly
at 12:00.]
- Students will be required to show their ISU student ID
cards or other official photo identification prior to turning in
their final exams.
- In addition to official photo identification, students will
need to bring pens or pencils (and possibly erasers!) to the exam
room. Calculators will not be needed. Also, test booklets will
be provided at the beginning of the final exam, so students
will not need to bring paper pads, blue books, etc. to the
exam.
- The final exam will be an in-class closed-book comprehensive
exam covering all class lectures, required class lecture notes,
required reading assignments, and required exercise sets assigned
for Econ 302 through the final day of classes. Emphasis will be
placed on course topics covered since the midterm, but earlier
course topics may also be used. The final exam will consist of a
selection of questions testing each student's ability to think
through macroeconomic issues using basic economic tools and concepts
as aids.
- Please see below under "Important Additional Information"
for my policies concerning missed exams and cheating on
exams.
IMPORTANT ADDITIONAL INFORMATION:
- Absence from an exam will result in a grade of zero unless
there are verified extenuating circumstances such as a major
medical emergency. [Please note that a "conflicting appointment"
does not constitute an acceptable excuse.] In case of a verified
extenuating circumstance resulting in a missed exam, the course
grade will be determined on the basis of other work completed; no
make-up exams will be scheduled. A student missing both the
midterm and final exams will be asked to withdraw from the
course.
- Cheating of any kind will not be tolerated; university
sanctions will be forcefully applied. Any student caught
cheating on an exam will receive an automatic F for the exam, and
additional actions may also be taken in line with university
policy. In particular, multiple versions of the test questions
will be distributed; and any student who turns in one version of
the test with answers corresponding to an alternative version of
the test will automatically receive an F for the exam.
OUTLINE OF TOPICS AND REQUIRED READINGS
Class lecture topics and required readings are listed below.
Required basic lecture notes for some of the assigned Hall and
Taylor (HT) chapters (and possibly other assigned readings) will be
made available on this web site, and also put on closed reserve in
the Econ/Soc Reading Room in Heady Hall 368, as the course proceeds.
The HT chapter readings include the review and
practice sections at the end of each chapter. The exact amount of
time spent on each topic, and the particular selection of assigned
exercises, will be determined as we proceed through the course and
will depend on the backgrounds and interests of the students.
Please note: Practice exercise sets have been made available
for self-study, and are highly recommended for all students. Also,
advanced lecture notes have been made available for some of the
assigned HT chapters. These advanced lecture notes are recommended
for students wishing to acquire a more in-depth understanding of
macro; they are not required.
- I. INTRODUCTION
- HT Chapter 1 (The Macroeconomy)
- Study Guide, Chapter 1
- Economic Report of the President, Chapter 1 (pp. 19-40)
- Basic class lecture notes on HT Chapter 1
- First Assigned Exercise Set,
Due Sept 10, 2:10 P.M.
- II. TOOLS AND CONCEPTS FOR MACROECONOMIC ANALYSIS>
- HT Chapter 2 (Measuring Economic Performance: Output and Income)
- Study Guide, Chapter 2
- Economic Report of the President, Chapter 2 (pp. 41-75)
- Basic class lecture notes on HT Chapter 2
- First Assigned Exercise Set, due
September 10, 2:10 P.M.
- Advanced lecture notes for HT Chapter 2
- (recommended only)
- HT Chapter 3 (Inflation and Employment)
- Study Guide, Chapter 3
- Basic class lecture notes on HT Chapter 3
- Second Assigned Exercise Set,
due September 17, 2:10 P.M.
- Advanced lecture notes for HT Chapter 3
- (recommended only)
- Practice Exercise Set 1
- Answer Outline for Practice Exercise Set 1
- Practice Exercise Set 2
- Answer Outline for Practice Exercise
Set 2
- III. THE BASIC HALL AND TAYLOR MACROECONOMIC MODEL
- HT Chapter 4 (The Long-Run Growth Model), pp. 87-98 and 104-111
- Study Guide, Chapter 4
- Basic class lecture notes on HT Chapter 4
- Advanced lecture notes for HT Chapter 4
- (recommended only)
- HT Chapter 5 (Monetary and Fiscal Policies), pp. 122 and 132
- Study Guide, Chapter 5
- Economic Report of the President, Chapters 3--4 (pp. 77-129)
- Basic class lecture notes on HT Chapter 5
- Third Assigned Exercise Set, Due
October 1, 2:10 P.M.
- Advanced lecture notes for HT Chapter 5
- (recommended only)
- Midterm Exam: Review Guide
- HT Chapter 6 (Short-Run Fluctuations and Spending Balance)
- Study Guide, Chapter 6
- Basic class lecture notes on HT Chapter 6
- Fourth Assigned Exercise Set,
Due October 15, 2:10 P.M.
- Advanced lecture notes for HT Chapter 6
- (recommended only)
- HT Chapter 7 (Financial Markets and Aggregate Demand)
- Study Guide, Chapter 7
- Basic class lecture notes on HT Chapter 7
- Fifth Assigned Exercise Set,
Due October 29, 2:10 P.M.
- Advanced lecture notes for HT Chapter 7
- (recommended only)
- HT Chapter 8 (The Complete Model)
- Study Guide, Chapter 8
- Basic class lecture notes on HT Chapter 8
- Sixth Assigned Exercise Set,
Due November 12, 2:10 P.M.
- Seventh Assigned Exercise Set,
Due November 21, 2:10 P.M.
- Advanced lecture notes for HT Chapter 8
- (recommended only)
- HT Chapter 9 (Macroeconomic Policy: A First Look)
- Study Guide, Chapter 9
- Basic class lecture notes on HT Chapter 9
- In-class exercise on simplified
presidential platforms: Discussion notes
- Advanced lecture notes for HT Chapter 9
- (recommended only)
- Practice Exercise Set 3
- Answer Outline for Practice Exercise Set 3
- Practice Exercise Set 4
- Answer Outline for Practice Exercise Set 4
- Practice Exercise Set 5
- Answer Outline for Practice Exercise Set 5
- Practice Exercise Set 6
- Answer Outline for Practice Exercise Set 6
- Final Exam: Review Guide
- FINAL EXAM
- According to the ISU bulletin, the final exam for Econ 302
is tentatively scheduled for Tuesday, December 17,
12:00-2:00 P.M., in the regular class meeting room Heady 274.
-
Practice final exam and answer key