ECON 105

Macroeconomic Principles
 
Kevin Wainwright
Office:3689 West Mall
Phone: (604)  291-5499
Email:wainwrig@sfu.ca
 
Fall 2006
Prerequisites: None
  

Description:

Principles of Macroeconomics is a course which examines a variety of issues such as the determination of national income, the problem of inflation, government fiscal and monetary policies, and Canada's place in the international economy. By the end of this course students should

Required Texts:

Grading:

 
2 quizzes
20%
Assignments
10%
Midterm
30%
Final
40%

Topics & Readings

 
Section I: Introduction (Chapters 1-3)
[1]  Macroeconomic Variables, Business Cycles
[2] National Income Accounts.

Section II: Keynesian Macroeconomic Model (Chapters 4-7)
[3]  Consumption, Savings and Investment:  Aggregate Demand 

  • (ch 4, LN 1)

    • [4] Add the Public & Foreign Sector, the Multiplier 
  • (ch 4 LN 2)

    • [5]  Aggregate Supply and The Price Level
  • (ch 5 LN 3)

    • [4]  Growth and Crowding Out
  • (ch 6, 7; LN 4, 5)

    •  

     
     
     
     
     
     
     
     
     

    Section III: Money, Banking and Monetary Policy (Chapters 8-10)
    [5]  Canadian Banking system

  • (ch 8, LN 6)

    • [6]  Quantity Theory and Money Demand
  • (ch 9, LN 7)

    • [7]  Monetary Policy
  • (ch 10, LN 7)

    •  

     
     
     
     
     
     
     
     
     

    Section IV: Macroeconomic Problems and Policies  (Chapters 11-14)
    [8]  Inflation

  • (ch 11, LN 8)

    • [9]  Inflation and Unemployment (stagflation)
  • (ch 12, 13; LN 8)

    • [10]  Debts, Deficits, and Economic Growth (see also Ch 6).
  • (ch 14)

    •  

     
     
     
     
     
     
     
     
     

    Section V: International Economics (Chapters 15-18)
    [11]  Exchange Rates and the Balance of Payments
    (ch 15)
    [12]  Macro-policy in an open economy
    (ch 16)
    [13] Purchasing power and Interest rate Parity
    (ch 17)

    Lecture Notes:

    1. Keynesian Model I: Consumption, Investment, and the multiplier
    2. Keynesian Model II: Government, Foreign Sector, and Equilibrium
    3. AD-AS Short Run: Determinants of the price level
    4. AD-AS Long Run: Business Cycle, Supply Shocks, Stabilization Policy
    5. Growth: Theories and issues
    6. Money and Banking: How banks work
    7. Money and Interest rates: Money Demand, bonds, interest rates and Bank of Canada
    8. Inflation & unemployment: inflation, stagflation, phillips curve, validation
    9. Trade Policy: Canadian Perspective
    10. Balance of Payments: Exchange Rates, Twin Deficits, PPP

    Study Questions and Answer keys:

    First Half (up to Midterm) AD-AS and the Keynesian Models

    • The AE Model: The algebra of the full model with government and foreign sectors
    • Study Questions for Midterm. These questions cover the AD-AS model and Money and Banking. Also include Quiz One study questions and all Homework in preparation for the Midterm
    • Midterm With Answer Key. Use this to study for the final

    Second Half (post MT to Final) Money & Banking, Unemployment, Open Economy


    Quiz Number Two

    • This quiz covers Chapters 9 to 11. Review the media questions and numerical questions. Even numbered answers are found at the end of the text. For answers to odd numbered questions CLICK HERE
    Open Economy`
     
    Tutorial Assignments: