PRIOR SYLLABUS. SUBJECT TO CHANGE. CONTACT INSTRUCTOR FOR FURTHER INFORMATION.

ECONOMICS 11 FALL 2008 OFFICE HOURS: TUE: 10-11 W 2-3 FLORIA THOMSON MW 4:40-5:55 Office: 334 Old Mill Phone: 656-1328 EMAIL: fthomson@uvm.edu

UNIVERSITY OF VERMONT DEPARTMENT OF ECONOMICS PRINCIPLES OF MACROECONOMICS

COURSE OBJECTIVES In our everyday activities and readings, we confront concepts such as inflation, unemployment and recession. These all deal with the economy as a whole. The main objective of this course is to acquaint students with some basic concepts and theoretical underpinnings of a market economy as a whole. This should provide students with analytical tools for a better understanding of the economy and help them to analyze economic events at macro level. TEXT David C. Colander: “Macroeconomics”. Seventh Edition, 2008. COURSE REQUIREMENTS 1. Students are expected to read the relevant assignments before class and be able to participate in discussions. Attendance is expected. Participation and attendance count as 5% of the final grade. 2. Homework assignments should be handed in on time and count as 5% of the final grade. Late homework is NOT accepted without documented reasons. NOTE: Home works will not be returned to the students. You should make sure that you have a copy of your homework. 3. There will be a set of take home problems which are expected to be handed in the week after distribution in class. These count as 10% of the total grade.

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4. Two exams: Midterm will count as 35% of the final grade. Third and final exam, will count as 45% of the final grade. MIDTERM: WEDNESDAY OCTOBER 22. FINAL EXAM: MONDAY DECEMBER 15, 11:45 - 2:45

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COURSE OUTLINE 1. General overview of an economy. This section deals with a general overview of the economy, subject matter of economics, the concept of economic choice and its determinants. This section concludes with an initial look at supply and demand. A. Economics and Economic Reasoning. (ch. 1) Homework assignment pages 19-21: Questions 5,7. Problems 18,25,26,28. B. Trade, Trade-offs, and Government Policy (ch. 2 and Appendix A) Homework assignment pages 41-42: Questions 3,8. Problems 14,15, 16,17. FIRST PROBLEM SET: A PROBLEM SET ON PRODUCTION POSSIBILITIES CURVE WILL BE HANDED IN CLASS AND IS DUE THE NEXT WEEK. C. . Economic Institutions. (ch. 3 and Appendix A) Homework assignment pages 73-74: Questions 15,17. Problem 21. D. Supply and Demand and their applications to the real world. (ch. 4 and 5) Homework assignment: pages 99-101: Questions 4,7,11,17. Problems 21,22,23,28. Pages 117-119: Questions 1,5,9,14. Problems 20,24,28.

SECOND PROBLEM SET : A PROBLEM ON SUPPLY AND DEMAND WILL BE HANDED OUT IN CLASS. IT IS DUE AFTER THE WEEKEND.

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2. Macroeconomic concepts and problems. A. Economic Growth, Business Cycle, Unemployment and Inflation (ch. 6) Homework assignment: pages 153-54 Questions 3,7,9,12. Problems 16,19,20. B .Measuring the Aggregate Economy (ch. 7). Homework assignment: pages 172-73 Questions 2,7,11. Problems 13,15,17,18. C. Growth, Productivity, and the Wealth of Nations (ch. 8). Homework assignment: pages 197-98 Questions 5,13,15. Problems 18,20,24. 3. Macroeconomics Theory. A. Aggregate Demand, Aggregate Supply (ch. 9). Homework assignment: pages 224-25 Questions 4,7,12. Problems 15,18,19. B. The Multiplier Model (ch. 10 and Appendix B) Homework assignment: pages 248-49 Questions 1,2,7,11,15. Problems 18,20,22 THIRD PROBLEM SET: A PROBLEM ON THE MULTIPLIER MODELWILL BE DISTRIBUTED IN CLASS. IT IS DUE AFTER THE WEEKEND. 4. Money and Banking. A. Financial Sector and the Demand for Money (ch. 11 and Appendix A) Homework assignment: pages 277-78 Questions 3,10,13. Problems 19,22,26,27. Page 286 Questions 5,7,8,13,15.

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B. Monetary Policy (ch. 12). Homework assignment: pages 308-10 Questions 1,3,15,17,21. Problems 28,30,33. 5. Economic policy perspectives. A. Inflation and the Phillips Curve (ch. 13). Homework assignment: pages 331-32 Questions 4,6,14. Problems 19,20,22,23. B. Fiscal Policy and Public Finance (ch14). Homework assignment: pages 351-52 Questions 1,5,10,13. Problems15,16,20,23. C. Taxes, Budget, and Fiscal Policy (ch.15) Homework assignment: pages 372-73 Questions 5,7,15. Problems 17,18,19,20. 6. Global Economy and Macro Policy A. International trade Policy, Comparative Advantage, and Outsourcing (ch. 16). Homework assignment: pages 403-5 Questions 2,5,9,12,20. Problems 22,24,27. B. International Financial Policy (ch. 17 and Appendix A). Homework assignment: pages 430-32 Questions 2,5,8,11,20. Problems 27,28,30. C. Monetary and Fiscal Policy in a Global Setting (ch. 18). Homework assignment: pages 448-49 Questions 3,6,8. Problems 11,13,15,16. D. Macro Policies in developing Countries (ch. 19). Homework assignment: pages 472-73 Questions 2,5,8,11. Problems 23,26,27.

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