Principles of Macroeconomics (Eco 212)
Principles of Macroeconomics (Eco 212)
FINAL REVIEW SOLUTIONS ARE UP. SEE BELOW
Macroeconomics is the study of how the economy as a whole grows and changes over time. Principles of
Macroeconomics gives the students some basic tools in macroeconomics. The student will first learn how to measure
economic performance. There are many elements and dimensions to the performance of the economy (GDP, inflation,
unemployment, etc.). Here we learn not only what these measures are, but also get a perspective on the strengths,
weaknesses, and uses of each. Next, we will learn how to put these elements of the economy together in order to analyze
issues in macroeconomics. By far the most important of these is long run growth. Minute differences in the growth rate
of economies in the long run are the differences between the wealthy and poor countries. What determines long run
growth? Why do some countries grow faster than others? The second issue is short run growth, or the business cycle, the
booms and recessions, periods of inflation and deflation, full employment and unemployment that characterize the year to
year changes in the economy. What effect does changes in taxes and spending by the government, and changes in interest
rates under control of the Federal Reserve, have on the business cycle?
Professor: David L. Kelly, Associate Professor, Dept. of Economics (Dave).
The class meets weekdays, Monday to Friday, from 11:40 am to 1:05 pm in GB 431.
Office: Room 521B, Jenkins School of Business.
Office hours: Office hours will be held from 2-3 pm on the day before any homework or quiz is due.
Contacts: Dave can be contacted via phone (8x3725) or email (firstname.lastname@example.org).
Dave has established a website (http://moya.bus.miami.edu/~dkelly/teach/eco212/index.html)
for this course. At this site, you can download or view course material (homeworks, etc.), as well as a continuously
updated syllabus. Additionally, you may check your grades on EASY HERE.
The final exam is Friday, August 2, 11:40 to 1:05, in the same room (GB 431).
This course is the second course in the series, and requires Eco 211 (Economic Principles and Problems).
There is a required textbook:
John B. Taylor, Principles of Macroeconomics. Houghton Mifflin, 7th edition.
You can now access your grades online using EASY. Click HERE!
- Three homeworks ( July 3, July 16, July 26 ) 25%
- First Challenge (Quiz) 25% ( July 9 )
- Second Challenge 25% ( July 22 )
- Final Challenge 25% (August 2 )
- Attendence is required and very important for this class. All exam material comes from class notes, and not all
class notes are available in the book. Dave tries to reference every topic (whether in the book or elsewhere). However,
the wily student usually aces the course by attending every class and taking careful notes.
- There will be a homework due or challenge given about every 3-4 class meetings. Now is the time to mark your
calandars. Only in the most dire emergencies can the student not take a quiz at the scheduled time. Even in dire
emergencies, Dave does not allow a make-up, but instead weights the final more. STUDENTS MUST LET DAVE KNOW OF THEIR DIRE
EMERGENCY BEFORE THE QUIZ BEGINS IS DUE OR ELSE A ZERO IS AUTOMATICALLY RECORDED. LEAVING ME A MESSAGE OR EMAIL AND NOT
SHOWING UP PUTS YOU AT GRAVE RISK OF YOUR DIRE EMERGENCY NOT BEING APPROVED, IN WHICH CASE A ZERO IS AUTOMATICALLY
- Homeworks are due in class, at the beginning of class. Showing up 20 minutes late because you didn't finish the
homework on time is not acceptable. Putting a homework in my mailbox, under my door, etc. is also not acceptable.
Emailing homework is only acceptable if done in advance. Only in the most dire emergencies can a student be excused from
turning in a homework on time. Even in dire emergencies Dave does not allow the homework to be turned in late, but will
instead weight the final more. Students must let Dave know of their dire emergency before the beginning of the class for
which the homework is due or else a zero is automatically recorded.
- Computers are not allowed in class. 99% of what you need to write down in your notes is either math or graphs. Most
definitions, etc. are in the notes Dave provides.
- Smart phones, texting, portable games, X-boxes, Wiis, etc. are not allowed, as seeing students text breaks Dave's
mental flow. Therefore, each time Dave sees a student texting, he will subtract 1% from that student's final grade.
WARNING: Dave can see you text even when done in the back of class or under the table.
- Taking a summer class requires self-discipline. You need to keep up, preferrably every day. Slacking off for a few
days is equivalent to two weeks in a semester class.
Some Macro Links and Career Information
- Introduction (June 26).
- What is Macroeconomics? (chapter 5)
- Economic Models (chapter 2)
- Concerns and issues in macroeconomics (chapter 5)
- Tools used in macroeconomics (chapter 2)
- Measuring Economic Performance
- Output markets (June 27 - July 3)
- Gross Domestic Product (chapter 6)
- Income distribution
- Prices and Inflation
- Homework 1, DUE July 3
- Input markets (July 5 - July 9).
- Labor markets and employment (chapter 8)
- Capital and investment (chapter 7,9)
- Financial markets (July 10 - July 16).
- Interest rates (chapter 7,9)
- Money (chapter 10)
- FIRST CHALLENGE JULY 9
- The banking system (chapter 10)
- Foreign exchange markets (chapter 7, July 17 - July 19)
- HOMEWORK 2, DUE JULY 16.
- Long Run Growth (July 17 - July 23)
- Determinants of Long Run Growth
- Technology (chapter 9)
- Differences in long run growth across countries (chapter 17)
- SECOND CHALLENGE, JULY 22.
- Business cycles
- Aggregate Supply (chapter 12, July 24)
- Aggregate Demand (chapter 11-12, July 24 - July 26)
- Consumption Spending
- Spending Balance
- Investment Spending
- Government Spending
- Net Export Spending
- THIRD HOMEWORK, DUE JULY 26
- Short and Long Run Equilibrium (chapter 12)
- Applying the Business Cycle Model (July 30 - August 1)
- Monetary Policy (chapters 13,15)
- Price Shocks (chapter 13)
- Fiscal Policy (chapters 13,14)
Important graphs and tables
Business Cycle Graphs for Final Challenge
Up to Dave Kelly's homepage
Careers in Economics