ECON
102: Principles of Macroeconomics
Spring Semester, 2007-2008
Joseph
P. Joyce
Room 413 PNE
Department of Economics
Wellesley College
Tel: 781-283-2160
E-mail: jjoyce@wellesley.edu
Goals: This course is an introduction to macroeconomics for students
who want to understand the world they inhabit. Macroeconomics
is the study of aggregate economic activity. This includes
the determination of national output and the price level,
short-run fluctuations and long-term growth, the role of
the financial sector, the impact of monetary and fiscal policies,
and transactions with other economies.
Prerequisites: The prerequisites for the course are fulfillment
of the basic skills component of the Quantitative Reasoning requirement
and ECON 101: Principles of Microeconomics (or its equivalent).
Readings: The text for the course is:
Mankiw, Brief
Principles of Macroeconomics (4th ed)
Hakes, Study
Guide for Brief Principles of Macroeconomics (4th ed)
Supplementary readings will be available through electronic
reserves, or placed on reserve at Knapp.
Class
Tutor: Our class tutor will be available in the Econ Help Room
(PNW 116) at a date and time to be announced. Other tutors are
available there at other days/times.
Requirements: The final grade will be based on the results of
two mid-term exams (25% each), a final exam (40%) and the problem
sets (10%).
Class
Conference: We
will use our FirstClass conference to post announcements and
problem sets, answer questions, etc.
Office Hours: Office
hours will be on Wednesdays from 11
a.m.- 12 noon and Thursdays from 2 – 3 p.m. Attendance at ALT classes
is expected.
Honor Code: All members of the course are expected to adhere
to the Honor Code of Wellesley College.
READINGS
I. Introduction
Jan. 29:
PPF and Circular Flow
Mankiw, Ch. 2
II. Macroeconomic Concepts
Feb. 1: Gross Domestic Product
Mankiw, Ch. 5: p. 104-107
The Economist, “Chasing the Leader,” 2/8/03
Feb. 5: Nominal and Real GDP
Mankiw, Ch. 5: p. 99-103
Handout #1, “Nominal and Real GDP”
Feb. 6: ALT
Feb. 8:
Inflation and Unemployment
Mankiw, Chs. 6, 12: p. 255-265, 10: p. 198-210
The New York Times, “As Inflation Soars, Zimbabwe Economy Plunges,” 2/7/07
PROBLEM SET I (due Feb. 15)
III. Growth
Feb. 12:
Sources of Growth
Feb. 15: Record of Productivity
Mankiw, Ch. 7
The Economist, "Making Less with More," 4/12/2007
IV. Financial Markets
Feb. 19:
Financial Intermediation
Mankiw, Ch. 8
Feb. 20: ALT Class
Feb. 22:
Bonds and Stocks
Mankiw, Ch. 9: p. 189-191
PROBLEM SET II (due Feb. 26)
FIRST
EXAM: I - IV (Feb. 29)
V. Income-Expenditure Model
Feb. 26:
Equilibrium Output
March 4:
Government Expenditures and Taxes
Mankiw, Ch. 16: p. 371-374 (not "Crowding Out"), 375-377
Handout #2, “Keynesian Income Expenditure Model”
March 5: ALT Class
March 7:
Money and GDP
Mankiw, Ch. 16: 362-369
PROBLEM
SET III (due March 14)
VI. Aggregate Demand and Supply
March 11, 14: Ag D and Ag S
Mankiw, Ch. 15
March 18: Phillips Curve and Stabilization Policy
Mankiw, Ch. 17, The Economist, "Curve
Ball," 9/28/06
VII. U.S. Fiscal
Policy
March 19:
Federal Budget (ALT Class)
Mankiw, Ch. 16: p. 380
Wolf, "Social Security Hits 1st Wave of Boomers," USA Today, 10/9/07
PROBLEM
SET IV (due April 1)
March 25, 28: Spring Break
SECOND
EXAM: V - VII (April 4)
VIII.
U.S. Monetary Policy
April 1:
Money Creation
April 8, 11: Federal Reserve
Mankiw, Ch. 11
Handout #4, “Banks and the Creation of Money”
"Monopoly Power Over Money" in Economics: Making Sense of the Modern Economy
"Letting Light In," The Economist, 11/15/07
April 9 :
ALT Class
PROBLEM
SET V (due April 22)
IX. Open Economy
April 15 :
GDP and the Balance of Trade
Handout #5, “Open Economy Multiplier”
April 18:
Exchange Rate Markets
Mankiw, Ch. 13, p. 285-286
April 22: Monday Schedule
April 23: ALT Class
April 25: Fixed Ex Rates and Monetary Policy
Handout #6, “Fixed Exchange Rates”
"Losing Faith in the Greenback," The Economist, 11/29/07
April 29:
Balance of Payments
Mankiw, Ch. 13: p. 276-285
May 2:
International Monetary Fund
Joyce, “The IMF and Global Financial Crises,” Challenge, July 2000
Handout #7, “Anatomy of Balance of Payments Crises”
PROBLEM
SET VI (due May 6)
May 6:
Global Economy
Masson,
"Globalization: Facts and Figures," IMF Policy Discussion Paper,
10/01
RESOURCE GUIDE FOR LEARNING MACROECONOMICS
People
• JPJ (Office Hours: Wed 11 a.m. - 12 noon, Th 2 – 3
p.m.)
• Class Tutor, PNW 116
•
Econ Help Room: Sunday – Thursday, 7 – 9 p.m. PNW
116
• Other students: Study Groups, FirstClass 102 Class Conference
Reading Materials
• JPJ’s
Class lecture notes
• Mankiw, Brief Principles of Macroeconomics (4th ed)
• ALT class review notes
Review Questions
• JPJ’s
Problem Set Questions and Answers
•
Questions at end of Mankiw chapters, answers in Ghent’s
Instructor’s Manual
•
Question’s in Hakes’ Study Guide to Accompany Brief
Principles of Macroeconomics
• Interactive quizzes at web site of text:
http://www.thomsonedu.com/economics/mankiw/index.html
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