Economics | Introduction to Macroeconomics;Honors
S202 | 1655 | Prof. Gardner


Economics S202. Introduction to Macroeconomics (Honors)
Spring 1999/Gardner

Text: Parkin, Macroeconomics (5th ed)

This course is the sequel to S201 (or E201). If that material is a
little rusty, you should warm up by reading chapters 1-4 right away.
In this course, we look at the economy of an entire nation--most of
the time, that nation is the USA--how that economy functions, and how
it relates to the rest of the world. This means we get to ask some
really big questions, like--Why is the unemployment rate 4%? Why is
the inflation rate 2%? Why is Gross Domestic Product $8.5 trillion?
What was the Great Depression and can it happen again? Why is $1 worth
125 Japanese yen? Why is the federal budget $1.6 trillion and why is
it just now in surplus? Why is gold worth less than $300/oz? We will
answer all these questions and more. Besides reading the text,
students will be expected to read a reputable daily newspaper, such as
the Wall Street Journal, and to log on to macroeconomically important
web sites such as www.frb.gov on a regular basis. You will get more
out of this course if you attend class regularly.

Evaluation based on a 1000 point scale: 3 examinations (750 points),
12 weekly homework sets (175 points), participation (75 points). You
may work in small groups on the homework sets. No credit for late
homework. There will be 1 extra credit opportunity.

Module I: Variables, Concepts, and an Economy in Balance

Week 1--Basic concepts of Macroeconomics               ch 5

--Measuring the Macroeconomy                     ch 6

Week 2--Aggregate Supply and Aggregate Demand          ch 7

4--Employment and Unemployment                    ch 8

Review Session and Examination I
Module II:
Macroeconomic Policy

Week 4--Investment, Capital, and Growth               ch 10

--The Federal Budget and Fiscal Policy          ch 12

Week 5--Money and Banks                               ch 13

--The FED                                       ch 14

Review Session and Examination II




Module III: A National Economy in the World Economy

Week 6–Inflation                                       ch 15

–The Business Cycle                              ch 16

Week 7--Trading with the World                         ch 18

--Exchange Rates                                 ch 19

Review Session and Examination III