MGEC06

TOPICS IN MACROECONOMIC THEORY

(Intermediate Macroeconomics II)
Summer 2020

Instructor Contact Information:

Name: Dr. Ata Mazaheri

Office: IC288
Office hours: On Quercus (Tuesday &Thursday 12-2)
Email: ata.mazaheri@utoronto.ca
Telephone: 416-287-7348
Course website: http: portal.utoronto.ca

Course Delivery

MGEC06 will be delivered completely online so a reliable internet access is imperative.

The lectures will be recorded using “Snagit” and posted on a weekly basis on Quercus. For each
lecture, you are expected to complete the readings, watch the videos, and practice the problem sets. To
help you with all these, there will be TA office hours on Bb collaborate as well as discussion boards.
My TAs will also conduct tutorials on Bb Collaborate, those will also be recorded and can be played at
a later date.

Time-zones: All times posted will be in EST, i.e. local Toronto time. If you are in a different
time zone, please make sure you correctly identify what EST converts to where you are. Errors in
calculations are not an acceptable reason to miss deadlines.

Course Description:

The general goal of macroeconomics is to help students understand real world issues such as the
formation of wealth and economic growth, money, and in particular the business cycles. Equipped
with this understanding students can then evaluate different government policies aspiring to affect
these issues. To this end MGEC06 builds on the theories developed in MGEB06 to cover materials
on Aggregate supply and the Phillips Curve, Macroeconomic policy debates, Consumption theory,
Investment, Money supply and money demand, and Advanced theory of economic fluctuations.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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 Learning Objectives:

After taking this course, you should be able:

• to develop a deeper understanding of issues related to Aggregate Consumption, Aggregate

Investment, and Aggregate Money demand and supply by relating them to Microeconomics.
• to show how economic policies, such as government spending, taxes, and monetary policy
impact the business environment, and how the business environment affects local firms in
turn.
• to analyze macroeconomic issues in the short run, the medium run, and the long run in a
more systematic and balanced framework.

Prerequisite(s):

Prerequisite: MGEB06H3 & [[MATA32H3 & MATA33H3] or (MATA27H3)]

Textbook/Required Course Materials:

Gregory Mankiw and William Scarth, Macroeconomics 5nd Canadian Edition, Worth Publishing,
2015.

Course Material and Other Announcements:

• Lecture notes are posted on the portal several days ahead of the lecture. It is important to read them
before attending each lecture. It is necessary to try the assigned problems after each lecture before
attending the next lecture.
• This is an applied course and in so I will assign Economic Articles concerning current
Macroeconomic issues.
• Supplemental sample problems will be posted on the website. Some of those questions will be
taken during the tutorials. Practice the questions before attending the scheduled review sessions.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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Evaluation and Grading:

Component Weight/Value Due Date

Test-1 25% On Quercus

Test-2 25% On Quercus

Term Paper 10% August 7

Final 40 On Quercus

Coverage

• Test-1: Material covered to the end of Week-4.

• Test-2: Material covered from Week-6 to Week-9.
• Final Exam: is cumulative and covers the entire course.

Term Paper

As you know all courses in the Department of Management (including Economics courses) are required
to include a writing component that is worth at least 10% of the overall mark in the course. In order to
fulfill this requirement, there will be a short 1200-1300 words that must be submitted on or before the
last calendar day of this term. In general, this paper will you help to review the material covered in the
course in preparation for the final exam. I will post several recent macroeconomic articles from which
you are to choose one and critically analyse/discuss using the material learned in class. I will provide
further information on the Term Paper in Due time.

“Normally, students will be required to submit their course essays to Turnitin.com for a review of
textual similarity and detection of possible plagiarism. In doing so, students will allow their essays
to be included as source documents in the Turnitin.com reference database, where they will be
used solely for the purpose of detecting plagiarism. The terms that apply to the University's use of
the Turnitin.com service are described on the Turnitin.com web site”.

Aids Allowed for Term Tests and Final Exam

• The term tests as well as the final are open book assessments.
• By taking the assessments you are making the following pledge:
• "The University of Toronto's Code of Behaviour on Academic Matters applies to all
University of Toronto students. The Code prohibits all forms of academic dishonesty
including, but not limited to, cheating, plagiarism, and the use of unauthorized aids. Students
violating the Code may be subject to penalties up to and including suspension or expulsion
from the University.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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 • In submitting the assessments in Quercus under my name, I confirm that my conduct during
this assessment adheres to the Code of Behaviour on Academic Matters. I confirm that I did
NOT act in such a way that would constitute cheating, misrepresentation, or unfairness,
including but not limited to, using unauthorized aids and assistance, collaborating with another
person, impersonating another person, and committing plagiarism."

Policy on Missed Assignments/Examinations:

There will be no makeup test. If you miss a term test for any reason, the final exam will be re-adjusted
for the total of 65%. If you miss both term tests, the second miss will be automatically zero.

Academic Support

The Department of Management, in collaboration with the UTSC library, will be providing academic
research support in the IC Building. To refine your research skills or to learn more about various
scholarly resources, please contact the Librarian for Management and Economics students.

Lola Rudin, Subject Librarian, Management and Economics

Room IC375
Office hours: Monday & Thursday, 1:00 – 3:00pm or by appointment
Email: lrudin@utsc.utoronto.ca
Web: http://guides.library.utoronto.ca/utsc_mgmt

The English Language Development Centre (ELDC) helps students develop the critical thinking,
vocabulary and academic communication skills essential for achieving academic and professional
success. Personalized support includes: RWE (for academic writing); Communication Cafés (oral);
Discussion Skill-Building Cafés; Vocabulary Cafés; seminars/workshops; personal ELD consultations;
drop-in sessions. http://ctl.utsc.utoronto.ca/eld/

The Writing Centre (TWC) offers invaluable services to students (learn to become a better writer!) and
offers many different kinds of help: drop-in sessions, individual consultations, workshops, clinics, and
online writing handouts. http://ctl.utsc.utoronto.ca/twc/

Academic Misconduct

Students should note that copying, plagiarizing, or other forms of academic misconduct will not be
tolerated. Any student caught engaging in such activities will be subject to academic discipline
ranging from a mark of zero on the assignment, test or examination to dismissal from the university as
outlined in the academic handbook. Any student abetting or otherwise assisting in such misconduct
will also be subject to academic penalties.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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Finally: What you should do?

• MGEC06 is your gate to the real-world macro issues. Every-time you listen to economic news
on your TV channel or read the economic news of a newspaper, it should remind you of a topic
covered in this course. When you study MGEC06 think of it as an encyclopedia into modern
issues facing the governments in their attempt grow and prosper.
• When you watch a lecture, I expect you to have studied the prior lecture as well the textbook. I
also expect you to have solved the weekly problem sets before attending a lecture.
• If you require any assistance, feel free to ask me in class, during office hours, or if you are more
comfortable you can ask my TAs during their weekly office hours.
• I will post sample tests as well as sample final exam but you should not limit yourself to those
sample tests.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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 Detailed Course Outline

Date (Week of) Topic Session Material Recommended

(Chapters) Exercises

Week-1 Review Session Problem Set-0

Business Cycle Theory: Short Run 13
[Aggregate supply and Inflation -I]
Week-2 Business Cycle Theory: Short Run 13 Problem Set-1
[Aggregate supply and Inflation -II]
Week-3 A Dynamic Model of Aggregate Demand and 14 Problem Set-2
Aggregate Supply
Week-4 Macroeconomic Policy Debates 15 Problem Set-3
[Stabilizing the Business Cycle]
Week-5 Summing it up: Empirical Issues
Test-1
Week-6 Microeconomic foundations [Consumption – I] 17 Problem Set-4
Week-7 Microeconomic foundations [Consumption – 17
II]
Week-8 Macroeconomic Policy Debates 16 Problem Set-5
[Government Deficits and the Public Debt – I]
Week-9 Macroeconomic Policy Debates 16
[Government Deficits and the Public Debt – II]
Test-2
Week-10 Microeconomic foundations [Investment] 18 Problem Set-6
Week-11 Microeconomic foundations 19 Problem Set-7
[Money Supply & Money Demand]
Week-12 Recent Advances in Macroeconomics Notes Problem Set-8
Note: References are to Mankiw’s textbook.

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada

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