ECO
3431
Intermediate
Macroeconomics
Fall
2009
Dr. Cem Karayalcin
Office DM, 319A
Office hrs: T-Th
2:00-3:00pm
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.
There will be two midterm exams (September 24 and October 22, 2009) and one final with respective weights of 25%, 30% and 35%. Class participation accounts for 10% of the grade for the course.
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
Answers to Exams
Additional Readings
Comparing Job
Losses Across Recessions
Increase in Wages
During the Current Recession
PowerPoint Slides