Economics 312 (Spring 2016)

Intermediate Macroeconomics
Instr. Mario B. Muzzi
Office/hrs: CO 408/ T/Th 11-12:30pm
Email: muzzi@usfca.edu

Intermediate Macroeconomics--Syllabus

Course Description:
Macroeconomics is the study of aggregate economic activity. The typical
principles level course in macroeconomics provides a survey of methods for measuring
macroeconomic activity and outlines basic models of the interrelationships between key
macroeconomic variables such as the price level, gross domestic product, employment,
unemployment, and interest rates. The purpose of this course is to expose students more
formally to macroeconomic theory: its nature, uses, strengths, and weaknesses.

After a brief review of the topics covered at the principles level, the first half of
the course describes an economy in the long run, i.e., the market clearing potential
economy around which the actual economy fluctuates. The second half of the course
focuses on macroeconomics in the short run introducing and developing basic models of
business cycle fluctuations and policy applications. Along the way, a student should gain
a thorough understanding of: (1) the Classical Theory, (2) the Solow Growth Model, (3)
Keynesian Theory and IS/LM model, (4) the debated effects of monetary and fiscal policy
on output, prices and employment, (5) issues concerning government debts and (6) issues
concerning trade imbalances.

Learning Outcomes:
1. Understanding macroeconomic data;
2. The fundamentals of economic growth;
3. The tools of fiscal and monetary policy and how they affect the economy;
4. The nature and causes of the business cycle (expansions and recessions);
5. The influence international trade and finance have on an economy;
6. How the principles learned in microeconomics are consistent with certain
macroeconomic models.
7. To analyze and critically evaluate economic arguments and policies discussed in the
media in a rigorous and systematic manner.

Office Hours:
My office hours this semester will be on Tuesdays and Thursdays from 11am to
12:30pm. Please feel free to set up an appointment with me, if these hours are not good
for you. Do not wait until you are lost in this class to seek help. Remember that I and the
Teaching Assistant are here to help you learn. My office is located at 408 Cowell. Dont
hesitate to email me if you need help, want to make an appointment, or have any other
issue you wish to discuss.

Homework, Quizzes, Exams and Grades

5 Problem Sets 25%
Two Midterms 40%
 Final Exam 35%
100%

Class attendance While no portion of the official points is allocated to class

participation, class attendance, and participation will form the basis for borderline grade
decisions. Habitual tardiness to class will quickly and significantly reduce your final
class grade.

Grade Scale:

92-100% A
88-91 A-
84-87 B+
79-83 B
75-78 B-
72-74 C+
68-71 C
65-67 C-
63-64 D+
58-62 D
56-58 D-
Less than 55% F

Reading Assignments:
The textbook for this course is Macroeconomics (9th Edition) by N. Gregory
Mankiw. Feel free to read the text either just before or just after the lectures on a certain
topic. But I would encourage you to keep up with the reading; it will be very hard to do
well in this class without devoting at least 3-5 hours a week toward studying the material
in the textbook and the examples given therein. Also, intermittently during the semester I
may assign articles of interest from the Wall Street Journal, the New York Times, the
Financial Times, The Economist, or reputable online blogs. Any such material will be
posted on Canvas.

Rules of the Game:

1. Be on time to class. Coming into class late distracts other students and is a nuisance.
After a warning tardiness will begin to have a strong negative effect on your grade
really!

2. Turn in problem sets on time--problem sets turned in after the beginning of the class
they are due will be heavily marked down (i.e., 10% to 25%). Late assignments will not
be accepted after 5pm on the day they are due. If you cannot attend class to turn the
assignment in, you may email it instead.

3. Make sure your cell phones are silent during the lecture. I do allow the use of laptops
and tablets during the lecture but if I notice that your use of such technology is distracting
other students from the lecture, I will take away your privilege to use said technology.
4. Feel free to work together in pairs or in groups on problem sets. However, students
must do their own work on tests; cheating of any kind on quizzes or exams will not be
tolerated, and will be dealt with in a very serious way. This class will be conducted in
strict observance of the Universitys Academic Honesty Code
(http://www.usfca.edu/uploadedFiles/Destinations/Offices_and_Services/Student_Conduc
t/Fogcutter/HonorCode_2013.pdf), without compromise or exception.

5. The only excuse for missing homework, midterms or the final is a medical excuse
signed by a doctor, or a verifiable personal or family emergency. Please do not take this
class if the final exam date is not convenient for you. No other dates will be available.
Tentative Class Schedule
Jan 26, 28: Introduction: The Science and Data of Macroeconomics
(Chapters 1-2)

Feb 2, 4 National Income: Where It Comes From and Where It Goes

(Chapter 3)

Feb 9, 11 The Monetary System

(Chapter 4)

Feb 16, 18 Inflation: Its Causes, Effects, and Social Costs

(Chapter 5)

Feb 23, 25 The Open Economy

(Chapter 6)

Mar 1, 3 Unemployment, Review

(Chapter 7)

Mar 8, 10 Midterm I, Economic Growth I: Capital accumulation and

Population Growth
(Chapter 8)

Mar 15, 17 Spring Recess

Mar 22, 24 Economic Growth II: Technology, Empirics, and Policy

(Chapter 9)

Mar 29, 31 Introduction to Economic Fluctuations

(Chapter 10)

Apr 5, 7 Aggregate Demand I: Building the IS-LM Model

(Chapter 11)

Apr 12, 14 Aggregate Demand II: Applying the IS-LM Model,

(Chapter 12)
Apr 19, 21 The Open Economy Revisited: The Mundell-Fleming Model
(Chapter 13)

Apr 26, 28 Midterm, Aggregate Supply and Short-run Tradeoff Between

Inflation and Unemployment.
(Chapter 14)

May 3, 5 Alternative Perspectives on Stabilization Policy

(Chap 18)

May 10, 12 Government Debt and Budget Deficits; and The Financial Crisis
(Chapters 19-20)

May 17 FINAL EXAM at 3pm-5:30pm