Intermediate Macroeconomic Theory Assignments
Swedish Central Bank's Memorial Nobel
Prize in Economics, 2002 Nobel Prize, 2003 Nobel Prize, 2004 Nobel Prize, 2005 Nobel Prize, 2006 Nobel Prize, 2007 Nobel Prize, 2008
Week 10
November 10, 2008 Chapter 12: International Linkages
- Day 17 PPT
- 10th Edition Ch. 12
- The Balance of Payments and Exchange Rates
- Fixed Exchange Rates
- Intervention
- Flexible Exchange Rates
- Floating, Clean, Dirty and Terminology
- Exchanges Rate in the Long-Run
- The Real Exchange Rate
- PPP - Purchasing Power Parity
- The World Bank and China's GDP per capita at PPP
- Goods Market and the Balance of Trade
- Capital Mobility
- The Balance of Trade and Capital Flows
- Policy Dilemmas: Internal and External Balance
- For homework do #4 in Chapter 12, "Technical Problems" on p. 297 (old), p. 312 (new). 10 points - Due Wednesday at the beginning of class.
November 12, 2008 Finish Chapter 12: International Linkages and Review for Final Exam
- Homework Due at the beginning of class
- Day 18 PPT - Available Soon
- Mundell-Fleming Model: Perfect Capital Mobility, Fixed Rates
- Fiscal Expansion
- Endogenous Money Shock
- Mundell-Fleming Model: Perfect Capital Mobility, Flexible Rates
- Adjustment to a Real Disturbance
- Fiscal Policy
- Adjustment to a Change in the Money Stock
- Beggar-Thy-Neighbor Policy
- REVIEW FOR THE FINAL EXAM
Week 12
Final Exam on November 24, 2008 MONDAY Rooms 2111 & 2112, 14:15 - 16:15
Week 9
November 3, 2008 Finish Chapter 11: Monetary and Fiscal Policy
November 5, 2008 Finish Chapter 13: Consumption and Saving
- Homework Due at the beginning of class
- 10th Edition Ch. 13
- Life Cycle Theory - Franco Modigliani
- Permanent Income Hypothesis - Milton Friedman
- LC-PIH Modern Approach
- Uncertainty in the Modern Approach
Week 8
October 27, 2008 Finish Chapter 9 and begin Chapter 10: Money, Interest and Income
October 29, 2008 Finish Chapter 10: and Begin Chapter 11: Monetary and Fiscal Policy
- 10th Edition Ch. 10
- Federal Budget Constraint
- The Slope of the IS Curve
- Changes in the Equilibrium levels of Income and the Interest Rate
- Deriving the Aggregate Demand Curve
- Problem Set #3 - NOW AVAILABLE!
- 10th Edition Ch. 11
- Monetary Policy
- The Transmission Mechanism
- The Liquidity Trap
- Banks' Reluctance to Lend?
- The Classical Case
- Fiscal Policy and Crowding Out
- An Increase in Government Spending
- Crowding Out
The "Whitehouse" Data Portal (U.S.A.)
Week 7
October 20, 2008 Chapter 33 of Mankiw: AD-AS
- LRAS/SRAS/AD
- Changes in AD - C, I, G, NX
- Changes in LRAS - Labor, Capital, Natural Resources and Technology
- Changes in SRAS (note that SRAS shifts PARALLEL with any shift in LRAS), wages and price expectations
Chapter 33 PPT of Mankiw presented in class
China's Real GDP and CPI numbers
October 22, 2008 Chapter 8: Policies and begin Chapter 9: Income and Spending
- 10th Edition Ch. 8
- Lags in Policy Effectiveness
- Activist Policies
- Expectations
- 10th Edition Ch. 9
- Aggregate Demand
- Consumption and Saving
- Autonomous Spending
- "The Autonomous Spending Multiplier"
- Government Sector or Fiscal Policy
- Transfer Payments and Taxes
- As stated in class: Do Problem #2, p. 210 for homework, DUE Monday, October 27 for 10 points.
Week 6
October 13, 2008 Mid-Term Exam
- Chapters 1 - 7 (as discussed in class)
October 15, 2008 Review the exam, Finish Chapter 7 and Chapter 8: Policies
Week 5
October 6, 2008 Finish Ch. 5 and Chapter 6: Aggregate Supply: Wages, Prices, and Unemployment
- Quantity Theory of Money
- Real versus Nominal wage
- AD under Keynesian versus Classical Supply Assumptions
- Supply-side Economics
- Chapter 6 PPT - 10th Edition Ch. 6
- The Price Adjustment Mechanism
- Inflation and Unemployment
- Phillips Curve
- Day 7 PPT
October 8, 2008 Chapter 6: continued and Chapter 7: Inflation and Unemployment
- Stagflation
- Rational Expectations Revolution
- Why are Wages Sticky?
- Supply Shocks
- Chapter 7 PPT - 10th Edition Ch. 7
- Unemployment
- Day 8 PPT
- Cyclical versus Frictional Unemployment
- Full Employment
- FREE QUIZ!
- Preview for the Mid-term Exam
Week 4
September 27, 2008 Chapter 5: Aggregate Supply and Demand & Finish Chapter 4
- Finish Chapter 4 topics!
- Chapter 5 PPT - 10th Edition Ch. 5
- Chapter 5.1: The Aggregate Supply Curve
- The Classical versus Keynesian Supply Curves
- Frictional Unemployment and the Natural Rate of Unemployment
- Aggregate Demand
- Day 6 PPT
October 1, 2008 NATIONAL DAY WEEK HOLIDAY
- Relax, catch-up on reading and be with family!
Week 3
September 22, 2008 Chapter 3: The Solow Growth Model
- Day 4 PPT - 10th Edition Ch. 3
- Convergence
- The Neoclassical Growth Model
- The Steady-State Equilibrium
- The Importance of Saving
- Population Growth
- What's a PCE? - Calculation, Quiz 4
- Read Chapter 4
- Homework for Wed. Sept. 24 for 15 points; Technical problems #3, 5 and 7 on pages 62-3 in
the 8th Edition (or page 73 in the 10th Edition).
September 24, 2008 Chapter 4: GROWTH AND POLICY & Finish Chapter 3
Week 2
September 15, 2008 MID Autumn Festival (silly me)!
September 17, 2008 Chapter 3: Growth and Accumulation
- Homework due at the beginning of class - Not the 15th - No worries!
- Chapter 3 PPT - Day 3 PPT
- Expenditure Approach numbers and growth rates (C + I + G + (x-m))
- Actual numbers from the BEA (see link to the left on the sidebar of my old Intermediate Macroeconomics Page)
- Income Approach and reconciliation (COCA, Indirect Business Taxes, etc.)
- Balance of Payments, Private Payments Balance, Trade Balance
- Chain-weight Real GDP?
- GDP broken into inflation and output growth
- Read Chapter 3
- Growth Accounting - Section 1
- The Cobb-Douglas Production Function - Box 3-1
- Production Function
- First, the Short-run: only labor (N) changes; capital, land and entrepreneurship stay the same.
- The Marginal Product of Labor and Capital
- Homework - #1, Technical Problems, p. 62 - Due Monday, Sept. 22 for 5 points
Week 1
September 8, 2008 Chapter 1: An Introduction to the Course
- Read Chapter 1 - Chapter 1 PPT - Day 1 PPT
- Note the three Macroeconomic goals and indicators of each:
- Economic Growth - real GDP change
- Price Stability - CPI change
- Full Employment - Unemployment Rate
- Finding the indicators through my web page at various sites.
- Three Macroeconomic Models:
- The Very Long Run
- The Medium Run
- The Short Run
- The Business Cycle: Recessions, Recovery and Booms
- Two Schools of thought:
- The Neo (New) Classical School
- The Neo (New) Keynesian School
- Overview of the Text and the Class
September 10, 2008 Chapter 2: National Income Accounting
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Last Update: September 30, 2008
By Andrew L. H. Parkes, Ph. D.