ECONOMICS 401 – MACROECONOMIC THEORY (17767)

Fall 2007

Professor Krol

Class Schedule: Tuesday and Thursday 5:30 – 6:45pm, Room JuniperHall 1125

Office: JuniperHall 4252 (fourth floor, northeast wing)

Office Phone: 818-677-2430

email:

OfficeHours: Tuesday & Thursday, 1:45 – 2:45, 4:00 – 5:00, and by appointment.

CourseGoal: The goal of this class is to increase your understanding of aggregate economic growth and fluctuations. Emphasis is placed on the microeconomic foundations of macroeconomic behavior.

Prerequisites: ECON 309, ECON 310 and ECON 311. Passing score on the Upper Division Writing Proficiency Exam (WPE).

Textbook: Macroeconomics (6th edition) by Andrew Abel, Ben Bernanke, and Dean Croushore (required)

Exams: There are two (essay) exams in this class. The midterm exam is scheduled for Thursday 10/18/07 and is worth 100 points. A comprehensive final exam is scheduled for Tuesday 12/11/07 (5:30 – 7:30) and is worth 100 points. Make-up exams will be given if I am notified (and I approve) prior to the exam.

Project: A short paper is due by the end of the class on Tuesday 11/20/07. Papers turn in after this date will lose one letter grade per day. The text of the paper can be up to three (typed, 12 point, and double spaced) pages in length. Graphs, tables, and references can be included beyond these three pages. You should choose a current U.S. macroeconomic issue to write your paper about by Thursday 10/18/07. I must approve the paper topic. The paper must include data for key macroeconomic variables analyzed in the paper. You need to choose a topic that has data you can collect and present in a table or graphical form (or regression analysis). In order to get a passing grade on the paper, I must approve your data analysis before you turn in the paper.

In order to get an A or B on the paper, it must include data (a graph of the data), economic analysis (use economic theory to explain the movement or relationship between variables), establish a clear hypothesis, and be well written. Papers that do not contain any economic analysis (or data) will receive a grade of C, at best. Poorly written papers without economic analysis (or data) will receive a grade of F. I do not accept electronic versions of the paper. This project is worth up 50 points.

Homework Assignments: Five homework assignments will be randomly collected. One problem on the assignment will be graded. If the problem is not done, the student will get zero points. If the problem is done, but is incorrect, the student gets 5 points. If the problem is done correctly but is brief, the student gets 7 points. If the problem is done correctly and has a complete answer, the student gets 10 points. A maximum of 50 points can be earned on the homework problems.

Grade: Your course grade is based on total points scored on the two exams, paper, and homework. Grading scale: A: 255 - 300 (85%), B: 225 - 254(75%), C: 195 - 224 (65%), D: 165 – 194 (55%), and F: 0-164. There is plus/minus grading. A grade of Incomplete will only be assign if you are passing the class and have completed most of the coursework. This grade will only be granted when unforeseen circumstances prevent you from completing the class. In order to get credit for your paper and homework, you must have a passing average on both of your exams.

Academic Dishonesty: Cheating on an exam or plagiarism on the class paper will result in an F in the class and a letter being sent to campus officials (See CSUN Catalog pp. 536 – 538).

Drop Policy: You may withdraw from this class online until 9/20/07. Drops are not permitted after that date (See CSUN Catalog pp. 527-528).

Other Rules: Do not use your cell phone during class. They should always be turned off before you enter the classroom. I expect you to be on time for class and prepared to discuss the reading material intelligently.

TentativeReadingAssignments:

Introduction and Review: Chapters 1 and 2

Microeconomic Foundations: Chapters 3, 4,and Appendix 4.A

Open Economy Issues: Chapters 5 and 13 (only pp. 476-492)

Economic Growth: Chapter 6

Money and Inflation: Chapters 14 (only pp. 529 – 546) and 7

Business Cycles: Chapters 8,9, 10, 11, and 12