EASTERN ILLINOIS UNIVERSITY

Department of Economics

 

Coleman 2771

ECONOMICS 4801:Intermediate Macroeconomic Theory

Dr. Dao

9:30-10:45 TR

Fall 2014

3 credit hours

 

 

This course is about analyzing the determination of national income, employment, wages, and factors affecting inflation and growth.

 

LEARNING GOALS: Upon satisfactory completion of this course, students will:

 

a) demonstrate an understanding of the theories, tools, and methods of macroeconomic analysis,
b) apply economic principles in the analysis of macroeconomic problems and policies,
c) identify the major economic institutions and describe their operation and interrelationships,
d) analyze those aspects of human behavior, both individual and social, through which the macroeconomic problem is addressed, and
e) describe the different economic systems into which societies organize themselves to deal with the macroeconomic problem

 

 

Book Available from the Textbook Rental Library:Gordon, Macroeconomics, Pearson, 10th edition.

 

Course Requirements:  

Two hour exams:50 percent of final grade

Weekly Quizzes and Problem Sets:20 percent of final grade

Comprehensive Final:30 percent of final grade

 

Office Hours: MW 2:00-3:00; TR 10:50-11:30; and by appointment  

Office: 2871 Coleman

Office Phone: 581-6329

 

(1) Academic integrity - Students are expected to maintain principles of academic integrity and conduct as defined in EIU's Code of Conduct (http://www.eiu.edu/judicial/studentconductcode.php).  Violations will be reported to the Office of Student Standards.
 
(2) Students with disabilities - If you are a student with a documented disability in need of accommodations to fully participate in this class, please contact the Office of Student Disability Services (OSDS).  All accommodations must be approved through OSDS.  Please stop by Ninth Street Hall, Room 2006, or call 217-581-6583.
 
(3) The Student Success Center - Students who are having difficulty achieving their academic goals are encouraged to contact the Student Success Center (www.eiu.edu/~success) for assistance with time management, test taking, note taking, avoiding procrastination, setting goals, and other skills to support academic achievement.  The Student Success Center provides individualized consultations.  To make an appointment, call 217-581-6696, or go to 9th Street Hall, Room 1302.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Course Outline

 

 

 

I.      INTRODUCTION AND MEASUREMENT

 

A.     What is Macroeconomics? (chapter 1)

B.     The Measurement of Income, Prices, and Unemployment (chapter 2)

 

II.   INCOME, INTEREST RATES, AND POLICY

 

A.    Spending, Income, and Interest Rates (chapter 3)

B.    Monetary and Fiscal Policy in the IS-LM Model (chapter 4)

 

III. AGGREGATE DEMAND, AGGREGATE SUPPLY, UNEMPLOYMENT, AND INFLATION

 

A.     Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy (chapter 7)

B.     Inflation: Its Causes and Cures (chapter 8)

 

First Hour Exam: Sep. 22-26, 2014

 

IV. SOURCES OF INSTABILITY IN THE MACROECONOMY AND

STABILIZATION POLICY

 

A.    Consumption Behavior (chapter 15)

B.    Investment Behavior (chapter 16)

C.    The Goals of Stabilization Policy: Low Inflation and Low Unemployment (chapter 9)

D.   Money and Financial Markets (chapter 13)

E.    Stabilization Policy in the Closed Economy (chapter 14)

F.    New Classical Macro Confronts New Keynesian Macro (chapter 17)

 

Second Hour Exam: Nov. 3-7, 2014

 

V. MACROECONOMICS IN THE LONG RUN: GROWTH AND PUBLIC FINANCE

 

A.     The Theory of Economic Growth (chapter 10)

B.     The Big Questions of Economic Growth (chapter 11)

 

If time permits:

 

C.     The Government Budget, the Public Debt, and Social Security (chapter 12)

 

Final exam: Wednesday, Dec. 17th, 2014, from 8:00 a.m. to 10:00 a.m.