5401

EASTERN ILLINOIS UNIVERSITY

Department of Economics

CH 2771 ECONOMICS 5401 Advanced Macroeconomic Theory
Dr. Dao
1230-1345 TR

Book Available from the Textbook Rental Library:

Blanchard, Macroeconomics, Irwin McGraw-Hill, 3rd edition. (referred to as BLC in course outline)

Other Readings

All books and journal articles mentioned in the course outline will be on reserve in the library.

Course Requirements:

Midterm (October 14, 2008): 40 percent of final grade
Problem Sets: (10 @ 5 points each): 10 percent of final grade
Comprehensive Final (Wednesday, Dec. 17, 2008, at 2:45 p.m.): 50 percent of final grade

Office Hours:

MW 2:00-3:00, TR 10:50-11:30 and by appointment

Office: 2365 Coleman

Office Phone: 581-6329

Note: If you have a documented disability and wish to receive academic accommodations, please contact the Coordinator of
the Office of Disability Services (581-6583) as soon as possible.

Course Outline

I. Introduction and Overview
BLC, chapter 2.

II. Fundamentals of Macroeconomics

A. The "IS-LM" Model BLC, chapters 3, 4, 5.
B. The AS-AD Model BLC, chapter 7.

III. Static Income Determination Theory

The Basic Four-Sector Model

Patinkin, Don, Money, Interest, and Prices, Harper and Row, 1965, chapter 9.
An excellent guide to this chapter is found in Robert L. Crouch, Macroeconomics, chapters 1-6. B. The Neoclassical Full-Employment Model Patinkin, chapters 10, 11, and 12 (excluding section 6). Also see Crouch, chapters 7, 8, and 9. C. Some Keynesian Underemployment Models Patinkin, chapter 13 (sections 1 and 4) D. The Barro-Grossman Full-Employment Model Barro, Robert and Herschel Grossman, Money, Employment and Inflation, Cambridge University Press, 1976, chapter 1. E. Disequilibrium Models Barro and Grossman, chapter 2. IV. Micro Foundations of Aggregate Demand

A. Consumption Demand BLC, chapter 16.

B. Investment Demand BLC, chapter 16.

C. Money Demand BLC, chapter 4.

V. Topics in Inflation and Unemployment

A. Inflation BLC, chapter 9.

B. Unemployment and the Phillips Curve BLC, chapter 8.

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