University of Lethbridge – Department of Economics

ECON 1012(A) – Introduction to Macroeconomics

Spring 2008

 

 

	Lectures	Laboratories
Instructor:	Michael G. LANYI	Michael G. LANYI
Class Times:	MWF: 9:00 – 9:50	Lab 1:   Th. 9:25 – 10:15
Place:	C–674	C–756
		Lab 2:   Th. 10:50–11:40
		C–756
Office:	C–574
Phone:	332–4590
E–mail:	michael.lanyi@uleth.ca
Office Hours:	MWF    15:30 – 16:20	Th.       10:15 – 10:50
	C–574	C–756

 

Required Materials:

 

Macroeconomics, Third Canadian Edition, (2006)

Colander, David C., Duane W. Rockerbie and Charlene Richter; McGraw–Hill Ryerson Canada

 

The Study Guide to the above text is available in the Bookstore and is HIGHLY recommended (but not required).

 

Course Objectives:

 

The purpose of this course is to provide the student with a background in macroeconomic theory. The course will begin with a review of microeconomics concepts necessary for an understanding of all subsequent material, and follow with the major themes in macroeconomics: national accounting, business cycles, unemployment and inflation, aggregate demand and aggregate supply, monetary and fiscal policies, government deficits, etc.

 

 

Course Outline:

 

Students are strongly encouraged to read the course material before attending lectures. Unless otherwise stated in class, students should read the entire chapter corresponding to the various topics outlined below (appendices can be omitted unless otherwise stated in class). The course material with chapter references is as follows:

 

No.	Topics	Reading
1.	Economics and Economic Reasoning	Ch. 1
2.	The language of Graphs	Ch. 1 Appendix
3.	The Economic Organization of Society	Ch. 2
4.	Demand and Supply	Ch. 4
5.	The Canadian Economy in a Global Setting	Ch. 3
6.	Economic Growth, Business Cycles, Unemployment and Inflation	Ch. 5
7	Macroeconomic Concepts: National Income Accounting	Ch. 6
8.	(Optional) Growth Productivity and Wealth	Ch. 7
9.	Aggregate Expenditures Model	Ch. 8
10.	Aggregate Demand and Aggregate Supply (AD–AS) Model	Ch. 9
11.	AD–AS Model and the Fiscal Policy	Ch. 10
12.	(Optional) Politics, Fiscal Surpluses, Deficits, and Debt	Ch. 11
13.	The Money Market and the AD–AS Model	Ch. 12
14.	Money, Banking and the Financial Sector	Ch. 13
15.	The AD–AS and Monetary Policy	Ch. 14
16.	The Inflation and Unemployment Trade–off	Ch. 15
17.	(Optional) International Policy Issues	Ch. 16
18.	(Optional) Open Economy AD–AS Model	Ch. 17

 

Lectures

 

Attendance in class is not mandatory and absences will not factor into the final course grade. However, since not all materials are covered in the text book, students are strongly encouraged to attend lectures. Lecture notes will be posted to the class web page on WebCT. These are made available to assist you during lecture and they are not a substitute for attending lectures. You are responsible for printing these (if required) and bring them to class. Out of respect for all students in the class, unnecessary disruption will not be tolerated. Missing lectures is not a valid excuse for inability to answer any exam question.

 

Laboratories

 

Laboratories are an important component of the course. You should be registered in one of Lab 1 or Lab 2. During these laboratories, I will answer any question you may have regarding lectures or exam. In addition, each week, approximately 20 multiple choice questions will be given to you and I will show you how to answer these questions.

 

Examinations, Absence Policy and Grade Determination

 

There will be three (3) midterms and a final exam. The best two (2) midterm grades will be counted as 50% of your final grade. The final exam is worth the remaining 50% of your final grade. There will be no assignments. All the midterms will be held in the classroom while the final exam will held during the final exam period (scheduled by the Registrar’s office). All exams will consist of multiple choice questions. The midterm exams are scheduled as follow:

 

 

Bonus Incentive on Performance:

 

You will have an opportunity to receive 3% bonus added to your final grade if the following condition is met. If your latest midterm grade is higher than the previous one, you will receive 1.5% bonus, and if your final exam grade is higher than your best midterm grade, you will receive the other 1.5% bonus. This bonus is designed to give you an incentive to perform better toward the end of the course.

 

 

Absence from Exam Policy:

 

If a student is absent from one (and only one) of the three midterms, no make-up exam will be given since only the best two exams will be counted toward your final grade. However, if a student is absent for more than one examination, she/he has the option of writing a make-up exam, or having the remaining exam weights increased accordingly. Except under extremely unusual circumstances, if an exam is to be missed for any valid reason (and this does happen), you must give notification before the scheduled time of the exam by calling my office. This is then followed up with appropriate documentation (e.g., a medical certificate) within 48 hours of the missed exam. Failure to do one or both of these will result in a failing grade on the examination.

 

Except under extremely unusual circumstances, no requests will be entertained for early or delayed exams.

 

Letter grades will be based on numerical final grades as follows:

 

	A+:	> 90	C+:	67 – 69.9
	A:	85 – 89.9	C:	64 – 66.9
	A–:	80 – 84.9	C–:	60 – 63.9
	B+:	77 – 79.9	D+:	56 – 59.9
	B:	74 – 76.9	D:	50 – 55.9
	B–:	70 – 73.9	F:	< 50

 

Students should keep all graded exams. In the case of disagreement between your recorded mark and the mark on your exam, the latter will be taken to be correct.