Principles of MACRO Economics

Syllabus

Reading:
- Main text: Case Fair Oster “Principles of Macroeconomics” 10th ed.
- additional: Gregory Mankiws "Ten Principles of Economics" (chapter 1)
All tests are closed book exams, no material is permitted --> mobile phones are strictly forbidden!!

Schedule (preliminary - changes may occur and will be announced in class and in the following table):

18 Alternative Views in Macroeconomics

No	Day	Book Chapter	Topics	Further material
1	Wed 29 June	(Mankiw chap. 1)	Introduction and “10 Principles of Economics” - Basic Questions: Why Economics? -> Basic Concepts of Economics	- Welcome.ppt - Teamwork about Mankiws "Ten Principles of Economics" and excerpt from B. Obama "The Audacity of Hope" (p. 176-184) (also see a debate in the Economist)
2	Thu 30	(Mankiw chap. 1)	Introduction: Basic problems; economic systems	- Hierarchy of goals in market economies - "Wall Street" (1987) @ Wikipedia; "Greed is good" speech on Youtube or a commented version with highlighted texts.
3	Tue 5 July	5	Teams' Presentation about Mankiws "Ten Principles of Economics" PART II Concepts and Problems in Macroeconomics 5 Introduction to Macroeconomics	Please use the online resources, tests and case studies on the book webpage (see above)
4	Wed 6	6	5 Introduction to Macroeconomics 6 Measuring National Output and National Income	Debate in the Economist about GDP as a measure of welfare.
5	Thu 7	7	6 Measuring National Output and National Income 7 Unemployment, Inflation, and Long-Run Growth (discussed up to the definition of the labor force (participation rate) and the unemployment rate, page 130, slide 8)
6	Mon 11 (room A 123)	Test 1	- Brief repetition and your questions - Test 1 with 75 questions (up to chapter 7 - only rates, see above)	results by ID numbers (available after class)
7	Tue 12 (room A 123)	8	(brief review of test 1) 7 Unemployment, Inflation, and Long-Run Growth PART III The Core of Macroeconomic Theory 8 Aggregate Expenditure and Equilibrium Output	Annenberg Video @ learners.org: 5. John Maynard Keynes
8	Wed 13 (room A 123 pc lab)	9	8 Aggregate Expenditure and Equilibrium Output Teamwork in the pc lab (see tasks in table below) ->	Some sources of data and information: o U.S. Department of Commerce: www.commerce.gov o Bureau of Economic Analysis: www.bea.gov o Bureau of Labor Statistics: www.bls.gov o Federal Reserve System: www.federalreserve.gov o The World Factbook (CIA): www.cia.gov/library/publications/the-world-factbook o For data on Europe, visit europa.eu (European Union home page) and o the European Central Bank home page on www.ecb.int. o International sources include the International Monetary Fund www.imf.org and the World Bank www.worldbank.org
9	Thu 14 (room A 123)	9	9 The Government and Fiscal Policy	+ Short presentations of the results of yesterdays teamworks
10	Mon 18 back in room A 110	9	9 The Government and Fiscal Policy	Annenberg Video @ learners.org: 5. John Maynard Keynes
11	Tue 19	9	Final discussion of: 9 The Government and Fiscal Policy (current situation and exercises)	(some exercises in class: Class_exercises_chapters_7and9.doc and answers to index/inflation questions in Class_exercises_chapters_7and9.xlsx)
12	Wed 20	Test 2	- Brief repetition and your questions - Test 2 with 75 questions (chapters 7(rest) -9)	- Results_test2.pdf - aggregate results after tests 1 and 2.pdf
13	Thu 21	10	10 The Money Supply and the Federal Reserve System	- Federal Reserve Bank (Monetary Policy -> Policy Tools) for example: FOMC: Press Conference on June 22, 2011, and brochure "The Federal Reserve System: Purposes and Functions"
14	Mon 25	10	10 The Money Supply and the Federal Reserve System	+ Material about monetary policy (Mankiw, Macroeconomics) + "How long is a string?" Monetary_Aggregates_UK-ECB
15	Tue 26	11	10 The Money Supply and the Federal Reserve System 11 Money Demand and the Equilibrium Interest Rate	Overview (blackboard): Money Market; Money Demand in (Neo-) Classic / Monetarist View
16	Wed 27	12	11 Money Demand and the Equilibrium Interest Rate Contemporary Monetary Policy: Fed vs. ECB 12 Aggregate Demand in the Goods and Money Markets	- Federal Reserve Bank (Monetary Policy -> Policy Tools)
17	Thu 28	12	12 Aggregate Demand in the Goods and Money Markets -> Simultaneous Equilibrium on all markets in the IS/LM model Contemporary Monetary Policy: Fed vs. ECB Summary and YOUR QUESTIONS !!!	- Federal Reserve Bank (Monetary Policy -> Policy Tools) - European Central Bank ECB (History, Organisation, Targets and Instruments) Study Abroad! An invitation to the World, esp. (Hochschule) Bremen ;-) at UNCW/Cameron see http://csb.uncw.edu/global/index.htm and/or talk to Dr. Rebecca Porterfield
	(outlook to pick single topics of interest do discuss)	13 19/20	13 Aggregate Supply and the Equilibrium Price Level 15 Financial Crises, Stabilization, and Deficits PART V The World Economy* (Outlook)* (19 International Trade, Comparative Advantage, and Protectionism) 20 Open-Economy Macroeconomics: The Balance of Payments and Exchange Rates	alternatively: Limits to Growth: Wiki: First edition (1972), 2004 Limits to Growth: The 30-Year Update, webpage - all by Dennis Meadows and others - Dennis Meadows at the Population Institute (video part 1) - Dennis Meadows at the Population Institute (video part 2 - start at 5.50)
(Ex)	Friday 29 2pm - 5 pm	Test 3	Final Test with 75 questions (chapters 10 and 11 plus additional topics discussed in class, esp. 12.1 (investment demand) and general terms about the links between goods and money markets / fiscal and monetary policy)	please check UNCW website

Team: Date:	(All students)	1	2	3	4	5	6
NAMES of	team members:	Kasey Rouse Thomas O'Connor Peter Thimios Jekelyn Huber Chris Allen Nicholas Humann	Amy Hallstrom Jose Nunez Adam Smith Pamela Bittner Alyssa Bearden Danielle Conway	Risa Moore Stephen Schaefer Kevin Petersen Kyle Hamblin Marcus Varsano Anthony Dawkins	Chris Ward Culen Wilson Kristen Pascoe David Harris Brian Graham	Frank Wolfgram Daytona Bordeaux Kaleigh Register Tyler McPherson Kenny Rich	Lauren Keifer Ashley Smith Jared Bryant Lisa Elkan Wayne Merrit
Wed 29 June	no tasks, Mankiws "Principles" in class: Your transparencies	1-2	3-4	5-6	7-8	9-10	excerpt from Obama
Tue 5 July	Mankiw: "Problems and Applications" ALL-> Nr. 17 ONE exampe !	14 (+1 ex. for 17)	13 (+1 ex. for 17)	12 (+1 ex. for 17)	8 (+1 ex. for 17)	3 (+1 ex. for 17)	1 (+1 ex. for 17)
Wed 13 July	Teamwork in PC lab: Each team please produces a ppt file, some of which will be presented in class. Please download data and copy them into an Excel file to produce tables and graphs.	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption	For 5 US states of your choice, find: - GDP - National (disposable) Income - (private final) Consumption
Wed 13 July	Find the 10 … countries of the world:	biggest area	biggest population	biggest GDP	biggest GDP/capita	smallest GDP	smallest GDP/capita
Wed 13 July	Consumption Function: Find a time series of (at least 15 years or quarters – better more) National (disposable) Income and (private final) Consumption Perform a regression analysis of the Consumption function	USA	Germany	Japan	China	Russia	Mexico