1

Economics 201

Principle of Economics – Macroeconomics

Sections 03 and 04 Spring 2002

Professor: / Dr. Tin-Chun Lin
Office: / CBUS 66
Phone: / (985) 549-3948
Email: /
Office Hours: / MWF 9:00-10:00am and 11:00am-12:00pm
TT 9:30-11:30am & By appointment
  • The main textbook for the course is Principles of Economics by N. Gregory Mankiw, The Dryden Press, 1998.
  • There will be three exams (two midterms and one final). Each exam will weigh one third of the grade. The date of each exam, materials covered and the type of each exam will be announced about two weeks in advance. There is no makeup exam unless you provide a particular reason with effective verification. You have to receive my approval in advance; otherwise, you won’t be allowed to take the makeup exam. The makeup exam will be rewritten, which is different from the original exam.
  • Someextrahomework assignments (could be two or three)will be handed outfor bonus points, which will be added in your midterm or final exams. The other bonus points, which are added directly in your final grade, will depend on your attendance and performance in class (i.e., whether or not you behave well and participate the discussion). Note: If you know that you will miss the class due to SLU athletic department trip or some other particular reasons, you must provide an effective verification and let me know in advance; otherwise, you will be counted into absence. In addition, if you must leave early in the middle of the class because of some special reason, you must let me know before the class begins; otherwise, you will be counted into absence.
  • Problem sets, which are not homework assignments, will be given to you for practice.
  • The last day to withdraw or resign from the university is Friday, March 22, 2002.
  • Classroom Rules: No Eating Food, No Talking with Classmates, and No Walking In/Out during the class.
  • Classroom Behavior: “Free discussion, inquiry and expression is encouraged in this class. Classroom behavior that interferes with either a) the instructor’s ability to conduct the class or b) the ability of students to benefit from instruction is not acceptable. Examples include routinely entering the class late or departing early, use of beepers, cellular telephones or other electronic devices, repeatedly talking in class without being recognized; talking while others are speaking, or arguing in such a way that is perceived as ‘crossing the line of civility’. If a student must bring a beeper or cellular telephone to class, prior approval of the instructor is required and it must be set on vibrate, not the audible setting.”
  • No Cheating on exam. If caught, the final grade must be “F” no matter what your original grade is. During the exam, no one can be allowed to wear a hat. This is to avoid cheating.
  • Course Objectives:

1. Learn basic economic vocabulary, also learn

2. American Capitalism, supply & demand, macroeconomics at the basic level.

3. Use tools in objectives 1 and 2 to address policy issues

4. Obtain knowledge of current events in a macroeconomic perspective

5. Learn about Internet data sources for macroeconomics

Following is a broad outline of the topics to be covered and the references.

Topics:

Part I: Introduction

1. What is Economics?

Mankiw: Ch.1

2. Production Possibilities and Opportunity Cost

Mankiw: Ch.2

Part II: How Markets Work

3. Market Demand and Supply

Mankiw: Ch 4

4. Markets in Action

Mankiw: Ch.6

Part III: Introduction to Macroeconomics

5. Measuring A Nation’s Income and Production

Lecture Note and Mankiw: Ch. 22

6. Aggregate Demand and Aggregate Supply

Lecture Note and Mankiw: Ch. 31

Part IV: Aggregate Demand Fluctuations

7. Expenditure Decision and GDP

Lecture Note

8. Expenditure Fluctuations and Fiscal Policy

Lecture Note

9. Money and Banking --- Money Supply

Lecture Note and Mankiw: Ch 27

10. The Demand for Money

Lecture Note

11. Fiscal and Monetary Influences on Aggregate Demand

Lecture Note

Part V: Aggregate Supply, Inflation and Business Cycle

12. Productivity, Wages, and Unemployment

Lecture Note

  1. Inflation and Business Cycle

Lecture Note

Part VI: Macroeconomic Policy

  1. Stabilizing the Economy

Lecture Note

Part VII: Growth and Development

  1. Growth and Development

Lecture Note