ECO 3202
Applied Macroeconomics
Summer A 2010
Dr. Cem Karayalcin
Office DM, 319A
Office hrs: Th 1:00-3:00pm
e-mail: karayalc@fiu.edu
webpage: www.fiu.edu/~karayalc
This course is designed to further the understanding of macroeconomic phenomena. The course teaches how to interpret business cycles, inflation and government policies that affect the macroeconomic environment. On the theoretical side, the course introduces both the conventional Keynesian theory and monetarism as well as the more recent approaches, such as rational expectations, and real business cycle analysis.
The textbook for the course is
Macroeconomics (6th edn) by Gregory Mankiw. It is available in the University Bookstore.
Student quizzes for practice are available at the textbook’s Web site: http://bcs.worthpublishers.com/mankiw6/
There will be one midterm exam (May 25,
2010) and one final (June 17, 2010) with weights of 45% each. Class
participation accounts for 10% of the grade for the course.
MIDTERM EXAM: Grades (out of 50) and the
“Curve” is here. Note that you can
identify yourself by the last four digits of the ID number you put on your scantron. Those who cannot need to send me an email.
FINAL EXAM: The answers are here.
READINGS
I. Introduction
Macroeconomic phenomena; looking around and identifying macro problems in the world; aggregate output and income; the unemployment rate; inflation; deficits.
1. Chapter 1
2. Chapter 2
II. The Core Macroeconomic Problems
The goods market; GDP; consumption; investment; government spending; equilibrium; production and sales; financial markets; money; interest rates; the banking system; the Federal Reserve; the open economy.
1. Chapter 3
2. Chapter 4
3. Chapter 5
4. Chapter 6
III. The Short Run
The natural rate of unemployment; aggregate supply; aggregate demand; monetary policy; fiscal policy; changes in the price of oil; IS-LM, exchange rates, the Phillips curve.
1. Chapter 9
2. Chapter 10
3. Chapter 11
4. Chapter 12
5. Chapter 13
IV. Policy Debates
Stabilization policy; government debt; rules vs discretion.
1. Chapter 14
2. Chapter 15
V. The Long Run
Facts of growth, saving, capital accumulation and output.
1. Chapter 7
2. Chapter 8
Additional Readings
Which Models can Explain the Great Recession? Different Views:
Bureau of Labor Statistics: The Employment Situation (April 2010)
Food for Thought
PowerPoint Slides