The University of Illinois at Chicago

EC121: Principles of Macroeconomics

Spring 2000

Prof. A. Adsera Office Hours

E-mail: Mon & Wed, 10:00-11:00

University Hall 2106 (312 – 413 9442) and by appointment

Lectures meet Monday, Wednesday and Friday from 9 a.m to 9:50 a.m. or 1 p.m. to 1:50 p.m. in room BSB 385.

Required Course Materials:

Macroeconomics: A Contemporary Introduction, by W. McEachern (South-Western college) and Study Guide to accompany McEachern's text by John E. Lunn. A summary of concepts will be posted for each chapter in my homepage at

Overview

This course provides an introduction to macroeconomics. Over the semester you will become familiar with macroeconomics statistics (unemployment, GDP, inflation, price indexes, monetary aggregates) and how the economy works. We will analyse the set of economic policy choices that any government faces. We will link some current issues with the material being explained in class. By the end of the semester you should be able to understand basic articles and statistics in any economic newspaper.

Grading Policies:

Two homework problem sets (H1 and H2 10 percent each), one midterm (M, 30 percent) and a final (F, 50 percent) will be offered. Your score will be based in the following formula

If F< H1+M+H2 then your score is the addition of all with its respective weight. If not, your score will be twice your final exam. This is to help students who improve over the semester. This means you will only gain by taking the midterm and completing the problems. You must take the final to receive a grade for the course. No make-ups will be offered. If you miss the final, you must have a documented emergency.

Note that the Midterm is scheduled for Monday, February 28th.

Class Etiquette

Come on time and do not leave early. Do ask questions and ask me to slow down if I am going too fast. Do not talk among yourselves during lecture.

Course Outline

I-Introduction

  1. The Art and Science of Economic Analysis, Chapter 1
  2. How to read and draw graphs and curves.
  3. Some Tools of Economic Analysis, Chapter 2
  4. The Market System: Demand and Supply, Chapter 3
  5. Economic Actors in the Economy, Chapter 4

II- Fundamentals of Macroeconomics

  1. Growth and Fluctuations of the National Economy, Chapter 5
  2. Productivity and Growth, Chapter 6
  3. Measuring Economic Activity. National Accounts, Chapter 8 up to p.170
  4. Measuring the Cost of Living. Price Indexes, Chap. 8 p.170-176 and Chap. 7 p. 145-154.
  5. Unemployment: Some Definitions, Chap. 7. P. 135-144 and handout.
  6. Aggregate Demand: Its Components, Chapter 9.
  7. The Multiplier and Shifts in the Aggregate Demand, chapter 10
  8. Aggregate Supply. Equilibrium in Short and Long Run, Chapter 11

III- Fiscal and Monetary Policy

  1. Monetary System, chapters 13 and 14
  2. Monetary Policy, chapter 15
  3. Fiscal Policy, Chapter 12
  4. Budget Deficit and National Debt, Chapter 17
  5. Policy Debate: Active or Passive? Chap. 16 p.340-354

IV – International Macroeconomics

  1. International Trade, Chapter 18