Course Description:

Analysis of the relationship between product, money, securities and labor markets and the foreign sector in determining the general economic stability with emphasis on their effects on income, employment and general price level. Study the influence of classical and Keynesian theory on analysis of economic problems and policy implication.
 

Course Objectives:

By the end of the semester, students should have a good comprehension of basic macroeconomic theories in explaining macroeconomic fluctuations and growth, and the relationship among macroeconomic variables. Students should be able to follow current macroeconomic developments with greater understanding and should also be able to conduct their own analysis of the likely effects of specific macroeconomic policy and shocks.
 

Examinations and Grading:

Your grade will be based on the final examination (60%), a mid-semester examination (40%). Problem sets or exercises will be assigned during the semester. Participation in these exercises will be voluntary and no grade will be given, as they are intended to help clarify matters presented in class.

There will be no make-up examinations. 100% of the grade will be based on the final exam for missed mid-semester test with legitimate excuse. No extra work will be accepted for extra credit to boost one's grade. The final exam will be comprehensive, covering all course topics.
 

Textbook:

Richard T Froyen, Macroeconomics: Theories and Policies, 6th edition Prentice Hall, 1998.
or
N Gregory Mankiw, Macroeconomics, 3rd edition, Worth Publishers, 1997
 

Course Syllabus:

1. Introduction
1.1 An Overview of Macroeonomics
1.2 National Income and Product: Concept and Measurement

Mankiw, Ch 1, 2 Froyen, Ch 1, 2
 

2. Basic Macroeconomic Model
2.1 Product Market
2.2 Money Market
2.3 Interaction of Product and Money Market
2.4 Effects of Fiscal and Monetary Policy
2.5 Aggregate Demand

Froyen, Ch 5, 6, 7 Mankiw, Ch 3, 9, 10, and 8
 

3. Equilibrium in the Economy
3.1 Factor Market: Demand for and Supply of Factor of Production
3.2 Aggregate Supply
3.3 Marshallian Cross: Aggreage Demand and Aggregate Supply
3.4 Economic Policies in the General Model

Froyen, Ch 8, 3, 4 Mankiw, Ch 12
 

4. Recent Developemts of Macroeconomics
4.1 New Keysian Theory
4.2 New Classical Theory

Froyen, Ch 11, 12 Mankiw, Ch 13, 14
 

5. The Foreign Sector
5.1 Interactions with the Rest of the World
5.2 Product Market in an Open Economy
5.3 Equilibrium in Product, Money and External Sector

Froyen, Ch 20, 21 Mankiw, Ch 7, 11
 

6. Inflation and Unemployment
6.1 Causes of Inflation
6.2 The Phillips' Curve

Froyen, ch 10 Mankiw, Ch 6
 

7. Microeconomics of Macroeconomics: The Sectoral Analysis
7.1 Government Sector
7.2 Consumption Expenditure
7.2 Investment Expenditure
7.3 Monetary Sector: Money Demand and Money Supply

Froyen, Ch 13, 14, 15, 16 Mankiw, Ch 15, 17, 18
 

8. Economic Growth

Mankiw, Ch 4