!!University!of!Vermont!Department!of!Economics!Course!Outline!!!!EC!11!!! ! ! ! ! ! Professor!Catalina!Vizcarra!Time:!M/W/F!3:00‐3:50!P.M.! ! ! 332!Old!Mill!Room:!Williams!301! ! ! ! ! Phone!Number:!6‐0694!Spring!2012! Office!Hours:!M/W!4:00‐4:[email protected]!!!!!!Principles!of!Macroeconomics!!!!In! this! course! we! will! study! the! fundamental! principles! of! market! economies! and!discuss! a!wide! range!of! conceptual! tools!that! will! help!us! analyze! macroeconomic!events! such! as!economic! growth,! inflation,! and! unemployment.! !By! the! end! of! the!semester! you! should! have! a! good! understanding! of! the! basic! functioning! of! the!overall! economy! and! of! the! role! that! government! has! in! influencing! economic!activity.!!!!!!Textbook!!Required:!!Michael!Parkin.!!Macroeconomics!10th!Edition,!Addison!Wesley,!2011.!!Optional:!!Mark!Rush.!!Study!Guide!(textbook!companion),!Addison!Wesley,!2011.!!!!Course!Evaluation!!Your!grade!will!be!based!on!four!exams.!!All!exams!will!have!equal!weight.!!You!are!allowed!to!drop!your!lowest!midAterm!grade.!!!2 Exam!Dates:!!Exam!1!Monday!Feb.!13th!!Exam!2!Friday!March!16th!!Exam!3!Friday!April!13th!!Final!Exam:!May!11th!1:30‐3:30!P.M.!!The!grading!scale!will!be!as!follows:!!A!range:!88%!or!above!B!range:!between!79‐88%!C!range:!between!70‐78%!D!range:!between!58‐69%!F:!below!58%!!!!Tentative!Course!Outline!!!1.!!Introduction.!!What!is!economics?!!Economics!as!a!Social!Science.!!Microeconomics!and!Macroeconomics!(!Chapter!1.!!Also,!review!the!appendix!to!Chapter!1:!!Graphs!in!Economics).!!2.!!The!Economic!Problem.!!Opportunity!Cost!and!the!Production!Possibilities!Frontier.!!The!PPF!and!Marginal!Cost.!!Preferences!and!Marginal!Benefit.!!Production!Efficiency!and!Allocative!Efficiency.!!The!gains!from!trade!and!economic!growth!(Chapter!2).!!3.!!Demand!and!Supply!fundamentals.!!The!laws!of!supply!and!demand.!!Market!Equilibrium!and!market!responses!to!shocks!(Chapter!3).!!4.!!Measuring!Economic!Growth.!!Gross!Domestic!Product.!!Nominal!and!Real!GDP.!!Limitations!of!Real!GDP!(Chapter!4).!!5.!!Measuring!Unemployment!and!the!Price!Level.!!The!basic!indicators!of!the!state!of!the!labor!market.!!Unemployment!and!Full!Employment.!!Types!of!Unemployment.!!The!Consumer!Price!Index!(CPI).!!Measuring!Inflation!(Chapter!5).!!6.!!Economic!Growth.!!Long!term!trends!in!economic!growth!around!the!world.!!Why!are!some!countries!rich!and!others!poor?!!Theories!of!economic!growth.!!Economic!Development.!(Chapter!6).!!7.!!Finance,!Saving!and!Investment.!!Financial!Institutions!and!Financial!Markets.!!The!Market!for!Loanable!Funds.!!The!Origins!of!the!2007‐2008!Financial!Crisis.!!The!Global!Loanable!Funds!market!(Chapter!7).!3 8.!!Money,!the!Price!Level!and!Inflation.!!What’s!money.!!How!banks!create!money.!!The!Federal!Reserve!System.!!The!Market!for!Money.!!The!Quantity!Theory!of!Money!(Chapter!8).!!9.!!The!Aggregate!Supply/Aggregate!Demand!Model.!Aggregate!Demand,!Aggregate!Supply,!and!Macroeconomic!Equilibrium.!!Macroeconomic!Schools!of!Thought!(Chapter!10).!!10.!!The!Exchange!Rate!and!the!Balance!of!Payments!(Chapter!9).!!11.!!Fiscal!Policy.!The!Federal!Budget.!!Fiscal!policy!and!the!business!cycle!(discretionary!vs.!automatic!stabilizers).!!The!supply!side!effects!of!fiscal!policy.!Generational!effects!of!fiscal!policies.!!Social!Security!(Chapter!13).!!12.!!Monetary!Policy.!!Monetary!Policy!Objectives!and!Framework.!!The!Conduct!of!Monetary!Policy.!!Alternative!Monetary!Policy!Strategies!(Chapter!14).!!13.!!International!Trade!Policy!(Chapter!15).!If!time!permits.!!!Supplemental!Instruction!!Cody! Reichenstein! will! be! your! Teaching! Assistant.! He! will! hold! supplemental!instruction! sessions!and! office!hours! to!help! you!grasp! the!material.!You!can!contact!him!by!e‐mail!at:[email protected].!!The! Supplemental! Instruction! sessions! are! an! opportunity! for! students! to! review!the! material! of! the! class! and! improve! their! understanding! of! the! course.! ! These!review!sessions! will!include! problem!solving,!and! test!preparation.! !Attendance! at!sessions!is!voluntary,!but!you!should!keep!in!mind!that!this!is!an!important!time!to!get!together!with!people!in!your!class!to!compare!notes,!discuss!important!concepts,!practice! problems,!and! prepare!for! examinations.!At! each! session,!Cody! will!guide!you!through!the!material!and!practice!problems.!!!Additionally,! Cody! will!be! available! for! drop‐in! office! hours.! ! This!means! that! you!can! show! up! any! time! during! his! office! hours! with! questions! about! the! class!material.!!This!is!an!opportunity!for!you!to!discuss!the!course!material!individually!and!to!tackle!individual!problems!you!may!have.!!!!Important!Policies:!!Please!review!the!following!codes!of!conduct:!!Code%of%Student%Rights%and%Responsibilities%!4 http://www.uvm.edu/~uvmppq/ppq/student/studentcode.pdf!!Code%of%Academic%Integrity%%http://www.uv.edu/~uvmppq/ppq/student/acadintegrity.pdf!!!Note:%!It!is!the!University!policy!to!allow!students!to!honor!their!religious!holidays.!!Students! should!submit! in!writing! by!the! end!of! the!second! full!week! of!classes! their!documented! religious! holiday! schedule! for! the! semester! so! as! to! arrange! for!
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