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: Website: www.unlv.edu/faculty/bmalamud

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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.

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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.

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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.

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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.

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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

Dates / Topic, Discussion Problems (End of Chapter)
Do each “discussion problem” shown in parenthesis (Chapter – Problem Number(s)) before class. Treat it like homework. While it will not be collected, you will be expected to participate in its discussion. / Reading
In Text
Aug 28,30
Sep 4
Sep 6,11
Sep 13,18
Sep 18
Sep 20,25
Sep 27
Oct 2,4
Oct 9,11
Oct 16,18
Oct 23,25
Oct 30
Nov 1 / Course Organization
Tour of the World: What’s Up? What’s Not? (1 – 1,6)
Tour of the Book: Macro-Talk (2 – 4,5,6,9)
Principles of Macro Redux
Labor Day Recess
The Goods Market: Z = C + I + G + X – Q
(3 – 2,3,5,6)
Problems: Chapters 1,2,3
Financial Markets: Md, Ms, i (4 – 2,6)
Problems: Chapter 4
Principles of Macroeconomics Takehome “Final” Due
Goods and Financial Markets: IS - LM
· Policy Exercises and Dynamics (5 – 4)
Problem: Chapter 5
Classroom Examination, Chapters 1 – 5
The Labor Market: Wages, Prices, and the “Natural Rate” (6 – 3)
Problem: Chapter 6
Putting It Together: AS – AD and Policy (7 – 3, 5)
Problems: Chapter 7
The Phillips Curve: Incarnations and Elaboration
(8 – 3, 5)
Problems: Chapter 8
Inflation, Activity, and Money Growth
Okun/Lucas/Volcker (9 – 3,6)
Problems: Chapter 9
Catch-up and Review
Classroom Examination, Chapters 6 – 9 / Chapter 1
Chapter 2
Review your Principles text
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9

Course Outline (continued)

Dates / Topic, Discussion Problems (End of Chapter) / Reading
In Text
Nov 6,8
Nov 13
Nov 15
Nov 20
Nov 22
Nov 23
Nov 29
Dec 4
Dec 6
Dec 13 / 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.
The Facts of Growth
Saving, Accumulation, and Output (11 – 5,8)
Technological Progress and Growth (12 – 7)
Progress, Wages, and Unemployment (13 –2)
Problem Session: Chapters 11,12,13
Classroom Examination: IS-MP-IA, Chapters10 – 13
Economic Pathologies: High Unemployment and
High Inflation
Catch-up and Review
Final Examination 6:00 – 8:00 pm / Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 22
Chapter 23