8/18/05; Preliminary

 

 Economics 302

Intermediate Macroeconomics

Fall 2005

Industrial Education II 224

Section 3, TR 9:30-10:45 a.m.


Instructor: H. Ike Van de Wetering

281 Heady Hall

515-294-5888

hivdw@iastate.edu

Office Hours: MTWThF 11:00-11:50 a.m.


Students should use e-mail as the preferred means of communication.

 

Roll calls will be taken every lecture (see the attached grade calculation worksheet).


Class Homepage


www.econ.iastate.edu/classes/econ302/vandewetering

Lecture Notes and Handouts

Lecture slides and handouts will be posted on the class homepage. The posted files are in pdf format. You may have to install Acrobat Reader (free) to access the posted files.

Homeworks

Go to class homepage

Grades

Go to class homepage

Important Dates

Go to class homepage
Important Messages
 Go to class homepage

MC questions or problems you find difficult

Go to class homepage



Homework Help Sessions, Grades and Records


Mr. Rueben Punnoose Jacob

B6 Curtiss

294-4827

e-mail: pjacob@iastate.edu

Computing Room

Heady Hall 68

Office Hours: Monday thru Friday, 8:00 a.m.-8:00 p.m.


Internet Resources

See Bookmarks


Syllabus


Econ 302.  Intermediate Macroeconomics.  (3-0) Cr.  F.S.  Prereq:  101, 102; Math 160 or 165.  Theory of income, employment, interest rates, and the price level; fiscal and monetary policy; budget and trade deficits; money and capital inflows, interest rates, and inflation.  Nonmajor graduate credit.


            Required text:

 

Rudiger Dornbusch, Stanley Fisher, and Richard Startz, Macroeconomics, Ninth Edition, McGraw Hill, 2004.

 

Part I - Introduction and National Income Accounting

 

                     Chapter 1         Introduction

                     Chapter 2         National Income Accounting

 

The Production of Output and Payments to Factors of Production

                                                Outlays and Components of Demand

                                                Some Important Identities

                                                Measuring Gross Domestic Product

                                                Inflation and Price Indexes

                                                Interest Rates and Real Interest Rates
                                                Exchange Rates

                                                Where to Grab a Look at the Data

 

                     Chapter 9         Income and Spending

 

Aggregate Demand and Equilibrium Output

                                                The Consumption Function and Aggregate Demand

                                                The Multiplier

                                                The Government Sector

                                                The Budget

                                                The Full-Employment Budget Surplus

 

                     Chapter 10       Money, Interest, and Income


                                                The Goods Market and the IS Curve

                                                The Money Market and the LM Curve

                                                Equilibrium in the Goods and Money Markets

                                                Deriving the Aggregate Demand Schedule

                                                A Formal Treatment of the IS-LM Model

 

                     Chapter 11       Monetary and Fiscal Policy


                                                Monetary Policy

                                                Fiscal Policy and Crowding Out

                                                The Composition of Output and the Policy Mix

                                                The Policy Mix in Action

 

                     Chapter 12       International Linkages


                                                The Balance of Payments and Exchange Rates

                                                The Exchange Rate in the Long Run

                                                Trade in Goods, Market Equilibrium, and the Balance of Trade

                                                Capital Mobility

The Mundell-Fleming Model: Perfect Capital Mobility Under Fixed Exchange Rates

                                                Perfect Capital Mobility and Flexible Exchange Rates

 

                     Chapter 5         Aggregate Supply and Demand


                                                The Aggregate Supply Curve

                                                The Aggregate Demand Curve

Fiscal and Monetary Policy Under Alternative Supply Assumptions

                                                Supply-Side Economics
                                                AS and AD in the Long Run

 

                     Chapter 6         Aggregate Supply: Wages, Prices and Unemployment

 

The Aggregate Supply Curve and the Price Adjustment Mechanism

                                                Inflation and Unemployment

Stagflation, Expected Inflation, and the Inflation-Expectations-Augmented Phillips Curve

                                                The Rational Expectations Revolution

                                                The Wage-Unemployment Relationship: Why Are Wages Sticky?

                                                From Phillips Curve to the Aggregate Supply Curve

                                                Supply Shocks

 

                     Chapter 7         The Anatomy of Inflation and Unemployment (not done this semester)

                                              

                                                Unemployment

                                                Inflation

                                                The Anatomy of Unemployment

                                                Full Employment

                                                The Costs of Unemployment

                                                The Costs of Inflation

                                                Inflation and Indexation: Inflation-Proofing the Economy

                                                Is a Little Inflation Good for the Economy?

                                                Political Business Cycle Theory

 

                     Chapter 8         Policy (not done this semester)


                                                Policy: Working Backward

                                                Lags in the Effects of Policy

                                                Expectations and Reactions

                                                Uncertainty and Economic Policy

                                                Dynamic Policy and Information Feedback

                                                Activist Policy

                                                Which Target?–A Practical Application

                                                Dynamic Inconsistency and Rules versus Discretion

 

                     Chapter 3         Growth and Accumulation

 

Growth Accounting

                                                Empirical Estimates of Growth

                                                Growth Theory: The Neoclassical Model

 

                     Chapter 4         Growth and Policy


                                                Growth Theory: Endogenous Growth

                                                Growth Policy


   

Homeworks

Students will complete one homework for each chapter covered in class, for a total of 9 (nine) homeworks.  Each homework has three parts (A, B, and C).

Part A:  two or three questions taken from the "technical problems" of the end of each chapter (except for chapter 1, where two substitute technical problems will be given).
Part B:  one or two questions taken from the "empirical problems" at the end of each chapter (except for chapter 1, where two substitute empirical problems will be given).

Part C: a 25 question MC quiz for each of nine chapters.

The nine homeworks will be available on line as the semester progresses.  Consult the schedule below, posted also on the class homepage.  Note the availability and closing date (and hour) for each homework.

 

Chapter #
HW#
Available Friday
Closes Friday 5:00 p.m.
1
1
8/19
8/26
2
2
8/26
9/2
9
3
9/2
9/9
10
4
9/16
9/23
11
5
9/30
10/7
12
6
10/21
10/28
5
7
10/28
11/4
6
8
11/11
11/18
3
9
11/18
12/2
4
 No Homework    



In Class Labs

Homeworks will be discussed during a 50-minute session on the Thursday prior to the Friday closing date for each assignment.

 

Chapter
In-class Lab Thursday
1
8/25
2
9/1
9
9/8
10
9/22
11
10/6
12
10/27
5
11/3
6
11/17
3
12/1
4
No lab.


     
The lab-session will consider all three parts of each homework.  Students are encouraged to provide timely feedback by using the "send" and "view" links on the class homepage.

Grading Policy

Each homework will have three parts.  Each part will be separately graded (A, B, C, D or F).  The grade for each part (I, II, and III) will be posted separately.  All homeworks will be available on line.  All homeworks have a preannounced closing date and hour (5 p.m.).  There will be no midterm examination.  The final examination will be comprehensive and includes all chapters covered in class.  Students are expected to attend class regularly.  Those that do will be suitably rewarded.  See the attached Grade Calculation Spreadsheet for a worked out example. Graduating seniors must take the final exam.

Grade Calculation Worksheet (9 homeworks, each having 3 separately graded parts; 1 final examination; class attendance)

I. Homework: MC Quiz

 

Weight

Example Grade

(Weight)*(Grade)

No. 1

.025

A

.100

2

.025

B

.075

3

.025

C

.050

4

.025

D

.025

5

.025

F

.000

6

.025

A

.100

7

.025

B

.075

8

.025

C

.050

9

.025

D

.025

II. Homework: Text related technical problems.

No. 1

.025

A

.100

2

.025

B

.075

3

.025

C

.050

4

.025

D

.025

5

.025

F

.000

6

.025

A

.100

7

.025

B

.075

8

.025

C

.050

9

.025

D

.025

III.  Homework:  Text related empirical problems.

No. 1

.015

A

.060

2

.015

C

.060

3

.015

F

.000

4

.015

A

.060

5

.015

C

.030

6

.015

F

.000

7

.015

A

.060

8

.015

C

.030

9

.015

F

.000

IV. Final Exam

.200

 B

.600

V.  Class Attendance (lectures attended)

 

 

 

   21 or more (A)

.215

 

 

   18, 19, 20 (B)

.215

B

.645

   15, 16, 17 (C)

.215

 

 

   12, 13, 14 (D)

.215

 

 

   11 or less (F)

.215

 

 

Note:  no midterm examinations; graduating seniors must take the final exam.

 

Sum 2.545
Rounded Sum 2.55
Course Grade B-

     We will follow a plus/minus grading scheme.

 

Letter Grade

 

 

Letter Grade

 

A

3.68-4.00

 

C

1.68-2.00

A-

3.34-3.67

 

C-

1.34-1.67

B+

3.01-3.33

 

D+

1.01-1.33

B

2.68-3.00

 

D

0.68-1.00

B-

2.34-2.67

 

D-

0.01-0.67

C+

2.01-2.33

 

F

.00-0.00