Economics 303 Section 1

Economics 303 Section 1 Intermediate Macroeconomics Fall 2006 WRI C 144 MW 5:30 – 6:45 pm

Instructor Bernard Malamud Office: BEH 502 Phone: 895 – 3294 Fax: 895 – 1354 Office Hours: MW 9:00 – 10 am, 11:15 am – 12:15 pm; and by appointment e-mail: [email protected] Website: www.unlv.edu/faculty/bmalamud ______General Nature of the Course This course considers the determination of income, output, employment, and the price level in a market economy. The roles of fiscal and monetary policies in promoting internal and external stability and economic growth are examined. Prerequisite: Junior Standing, ECON 202 and ECON 203. ______Course Objectives The theory and facts of macroeconomics will be used and useful to you in your career as an economist. You should already be familiar with various principles of macroeconomics. You will now master and build on these principles, learn their roots in the literature of the discipline, explore the positions of contending schools of thought, examine recent evidence testing these positions, and understand the policy implications of these positions. We will regularly discuss macro-fluctuations and policy debates as they occur during the semester. Upon completion of the course, you should be able to use appropriate models – including the ISLM model, David Romer’s IS-MP-IA model, models of aggregate supply and aggregate demand, and the Solow growth model -- to explain macroeconomic fluctuations and growth and to predict the impacts of monetary and fiscal policies on financial markets and the real economy. ______Text and Supplementary Readings Olivier Blanchard, Macroeconomics, 3nd edition,Prentice-Hall, 2003. Access the textbook’s website at http://myphlip.pearsoncmg.com/  David Romer, Keynesian Macroeconomics without the LM Curve, Journal of Economic Perspectives, 14(2), Spring 2000, pp. 149-169. Download this article from JSTOR via the UNLV Library website.  Economic Report of the President www.access.gpo.gov/eop/index.html  The Wall Street Journal (Available at student subscription rates).  The Economist http://www.economist.com Examinations and Grading Your grade will be based on a 40-point Principles of Macro Takehome“Final,” three 150-point classroom exams, and a 200-point comprehensive final examination. You will be able to re-do one question on each classroom exam at home; your score for that question will be the average of your classroom and take home scores. Attendance and class participation will also affect your grade.

Sep 18 Principles of Macroeconomics Takehome “Final” due 40 points Sep 27 Classroom Exam, Chapters 1 – 5 150 Nov 1 Classroom Exam, Chapters 6 – 9 150 Nov 29 Classroom Exam, IS-MP-IA, Chapters 10 – 13 150 Dec 13 Final Examination 200 Maximum Total Points 690 points

Approximate Grade Distribution

Average Score (out of 690 points) Final Grade 90 percent Borderline A- 80 percent Borderline B- 70 percent Borderline C- 60 percent Borderline D- Makeup Policy Makeup exams may be arranged at mutual convenience if you have a compelling reason to miss a scheduled classroom exam. A makeup exam must be taken before the missed exam is returned to the class. There will be no makeup final. ______Class Conduct Your instructor and classmates deserve courtesy. If you must arrive late or leave early, do so quietly. Inform me beforehand if you must leave class early. Smoking and eating in class are prohibited. Turn off your cell phones before class begins. Disruptive behavior in class constitutes grounds for dismissal from the course. While this probably need not be said, anyone found engaging in any act of academic dishonesty will be punished in accordance with university policies. ______Other Information The UNLV Disability Resource Center (DRC) houses the resources for students with disabilities. If you have a documented disability that may require accommodations, you will need to contact the DRC for coordination of services. The DRC is located in the Student Services Complex (SSC), Room 137. Their numbers are (702) 895- 0866/Voice; (702) 895-0652/TDD; and (702) 895-0651/Fax. For additional information, please visit http://www.unlv.edu/studentlife/drc. Course Outline Topic, Discussion Problems (End of Chapter) Dates Do each “discussion problem” shown in parenthesis (Chapter – Reading Problem Number(s)) before class. Treat it like homework. While it will not be collected, you will be expected to participate in its In Text discussion. Aug 28,30 Course Organization Tour of the World: What’s Up? What’s Not? (1 – 1,6) Chapter 1 Tour of the Book: Macro-Talk (2 – 4,5,6,9) Chapter 2 Principles of Macro Redux Review your Principles text Sep 4 Labor Day Recess

Sep 6,11 The Goods Market: Z = C + I + G + X – Q Chapter 3 (3 – 2,3,5,6) Problems: Chapters 1,2,3

Sep 13,18 Financial Markets: Md, Ms, i (4 – 2,6) Chapter 4 Problems: Chapter 4

Sep 18 Principles of Macroeconomics Takehome “Final” Due

Sep 20,25 Goods and Financial Markets: IS - LM Chapter 5  Policy Exercises and Dynamics (5 – 4) Problem: Chapter 5

Sep 27 Classroom Examination, Chapters 1 – 5

Oct 2,4 The Labor Market: Wages, Prices, and the “Natural Chapter 6 Rate” (6 – 3) Problem: Chapter 6

Oct 9,11 Putting It Together: AS – AD and Policy (7 – 3, 5) Chapter 7 Problems: Chapter 7

Oct 16,18 The Phillips Curve: Incarnations and Elaboration Chapter 8 (8 – 3, 5) Problems: Chapter 8

Oct 23,25 Inflation, Activity, and Money Growth Chapter 9 Okun/Lucas/Volcker (9 – 3,6) Problems: Chapter 9

Oct 30 Catch-up and Review

Nov 1 Classroom Examination, Chapters 6 – 9 Course Outline (continued) Reading Dates Topic, Discussion Problems (End of Chapter) In Text

Nov 6,8 IS – MP – IA: An Alternative View of Macroeconomic Fluctuations and Stabilization Read: David Romer, Keynesian Macroeconomics without the LM Curve, Journal of Economic Perspectives, 14(2), Spring 2000, pp. 149-169.

Nov 13 The Facts of Growth Chapter 10

Nov 15 Saving, Accumulation, and Output (11 – 5,8) Chapter 11

Nov 20 Technological Progress and Growth (12 – 7) Chapter 12

Nov 22 Progress, Wages, and Unemployment (13 –2) Chapter 13

Nov 23 Problem Session: Chapters 11,12,13

Nov 29 Classroom Examination: IS-MP-IA, Chapters10 – 13

Dec 4 Economic Pathologies: High Unemployment and Chapter 22 High Inflation Chapter 23

Dec 6 Catch-up and Review

Dec 13 Final Examination 6:00 – 8:00 pm