Introduction to Macroeconomics Economics 103 – Session T1 Summer 2007

COURSE INFORMATION:

Econ 01:220:103 (T1) Saturdays from 06/02 to 08/11 at 8.30-12.15 am Scott Hall 120 - CAC

INSTRUCTOR:

Costanza Biavaschi [email protected]

OFFICE HOURS:

Saturdays 12:30 to 1:30 pm and by appointment Room 408 – New Jersey Hall – CAC

PREREQUISITE:

A grade of at least C in 640:111 or 650:115 (pre-calculus) or placement into at least Calculus I.

Textbook The required textbook is P. Krugman and R. Wells (2005), Macroeconomics, Worth Publisher.

Course description The course will primarily serve as an introduction to the understanding of the key macroeconomic indicators economists use to study the larger economy. We will analyze and define these indicators, and how these indicators behave and affect the economy. The first part of the course will introduce basic principles of economics, including key macroeconomic indicators, such as GDP and unemployment. The second half of the course will analyze the historical evolution of various macroeconomic theories of how the economy works using the concepts and principles learned in the first half of the course. Special attention will be given to how fluctuations in economic indicators affect wealth and welfare in the economy and their role in macroeconomic policy.

Grading The final grade will be determined a midterm, final exam, and six problem sets. The final letter grade will be determined by a weighed average of the of the midterm, final, and problems sets. The weights are as follows: Problem sets Midterm Final Exam Total

150 points 150 points 200 points 500 points

30% 30% 40% 100%

The final letter grade will be determined by a curve. Students need to get a cumulative average of 60% to at least be considered as passing (D or better) with the cut-offs for grade A through D determined when the grades for the midterm, final, and problem sets are known.

Exams The final exam is not cumulative; however, it builds on topics that are on the midterm examination. To perform well, a clear understanding of previous material is needed. Exams will cover materials from assigned chapters of the course textbook and lectures. Material that is covered in the lecture but not in the text can be on the exam. There are NO make-up exams. Failure to take the exam at the stated time will result in a zero grade.

Further Remarks • • •

The problem sets are due at the beginning of the class. Students are expected to attend each lecture. Although attendance is not part of the grade, there is correlation between attendance and final grades. Consequences of violating the academic integrity policy with involvements in cheating will result in disciplinary actions. For information on the school’s integrity policy please see http://ctaar.rutgers.edu/integrity/policy.html.

Tentative Outline JUNE 2nd 9th 16th 23rd 30th

JULY 7th 14th 21th 28th

First Principles and Graphics in Economics (ch.1-2) Supply and Demand (ch. 3 and ch. 5) Macroeconomics and Macroeconomic variables (ch. 6-7) Financial System and Short run economic fluctuation (ch.9-10) Review Session for the last hour of this class MIDTERM EXAM - 1 hour and 30 minutes Discussion of exam solutions Short run economic fluctuations (ch.11)

Short run economic fluctuations (ch.12-13) Monetary Policy and Inflation (ch.14 and ch. 17) Labor market (ch.15) Long run economic growth (ch. 9) Open economy macroeconomics (ch.18)

AUGUST 4th 11th

Open economy macroeconomics (ch. 19) Review Session for the last hour of this class FINAL EXAM - 3 hours