ECON1010B (Principles of Macroeconomics): Fall, 2013

ECON1010B: INTRODUCTION TO Macroeconomics. Fall, 2013
M 7-10: ACW109

Kieran Furlong:
Office VH1057 (736-2100x33469): Wednesday 2:00–3:50PM

TEXTBOOK: Economics: Canada in the Global Environment (8th Edition)
Michael Parkin and Robin Bade. Toronto: Pearson Education, 2013
I will provide a complete set of notes so many students find that they don’t need the textbook. Nonetheless, I recommend it as a useful secondary source.
The study guide for this book is useful but cannot replace the course problem sets.

EVALUTION: Three term tests (7:00 – 8:00 PM on October 7, November 4, and November 25) are each worth 15% of the total grade and the final exam is worth 55% of the total grade. Exams combine diagrammatic/calculation/explanation questions (with some choice on the final), and multiple-choice questions.
The final exam, which is cumulative, is worth 15% more (for a total of 70%) of the grade in place of the lowest midterm mark if the final exam mark exceeds the lowest midterm mark.
There are no make-up exams. Students who miss a midterm for a valid medical reason must email me immediately and provide documentation of their excuse within a week of the midterm. The final exam is worth 70% for students who miss a term test. Students who miss a second midterm should drop the course since they will get 0 for that missed exam.
Students who miss the final exam must petition the university to write in the April/May exam period. There will be no choice on the final make-up exam.

PROBLEM SETS AND LECTURE NOTES
A package of Lecture Notes and Problem Sets with solutions is available for purchase in class. Theproblem sets are not graded but provide exercises necessary to clarify the economic models presented in the textbook and lectures and tested on exams.

LECTURE AND READING SCHEDULE

September

/ 9 / Introduction (Ch. 3) and Unemployment: Ch. 21, 492-499
September / 16 / Price Indices: Ch. 21, 500-506
Problem Set: Price Indices and Unemployment
September / 23 / National Accounts: Expenditure and Income. Ch. 20
Problem Set: National Accounts
September / 30 / Aggregate Expenditure: Consumption, Investment, Ch. 27, 648-651
Problem Set: Consumption/Investment
October / 7 / Mid-Term Exam #1: 7:00 – 8:00 PM
Equilibrium Real Income (MacroModel). Ch. 27, 652-655
Spending and Fixed Tax Multipliers: Ch. 27, 656-660, 668-672
Problem Set: MacroModel
October / 21 / Real Income and Fiscal Policy: Ch. 29, 704-710, 714-720
Money and Banking: Money Supply: Ch. 24, 568-577
Problem Set: Money Supply
October / 28 / Bank of Canada: Ch. 31, 728-735
Money Demand and Equilibrium: Ch. 24, 578-587
Problem Set: Money Demand/Supply and Equilibrium
November / 4 / Midterm Exam #2: 7:00 – 8:00 PM
Monetary and Income Equilibrium: Ch. 30, 736-740
Aggregate Demand: Ch. 26, 628-631, Ch. 27, 661-666
Problem Set: Money and GDP Equilibrium
November / 11 / Aggregate Supply: Ch. 26, 624-627

Short and Long-run Price Equilibrium: Ch. 26, 632-639

Problem Set: Aggregate Demand/Supply: Short-run
November / 18 /

Balance of Payments: Ch. 25, 607-611; Exchange Rates: Ch. 25, 594-604

Aggregate Demand/Supply: Long-run
November / 25 /
Midterm Exam #3: 7:00 – 8:00PM
Fixed/Flexible Exchange Rates and Money/Y Equilibrium. Ch.25, 611-15

Problem Set: Balance of Payments and Exchange Rates

December / 2 / Review
Problem Set: International Capital Movements

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