Econ 201: Macroeconomic Analysis. Fall 2013: Sunday, 9:00-12:00.

CLASS IS CANCELED FOR NOV 17th.

Econ 201: Macroeconomic Analysis. Sunday, Fall 2013. 9:00-12:00.

The material posted here is for: 

Econ 201: Macroeconomic Analysis

Fall 2013

Sunday 9:00 - 12:00 
Room PH 154

As you probably noticed there is a direct link to this post on the right hand side of the blog. 

I can be reached at: andrew.a.bossie@gmail.com

Office Hours: Sunday:  8:00am to 9:00am and 12:00pm to 1:00pm

If I am not in the classroom (PH154) I will be in the adjunct office in the economics department: PH300B.  I will also usually be available after class. 

Syllabus

Class Slides:

1. GDP and Employment

Jones Ch 1, 2 9 (pg 227-234)

2. Inflation and Inequality

Jones Ch 8

3. The Short Run 

Jones Ch 9
4.  IS Curve
Jones Ch 11

5. MP Curve

Jones Ch 12
6. The Risk Premium
Jones Ch 12
7.  The Long Run and  Growth Accounting
Jones Ch 3 and 4 (and 6).

HOMEWORK RULES:1. NEW: Must be handed at the beginning of class.  I will not accept it after I start going over the assignment due to students copying the answers off the board and handing them in.
2. Must be stapled. Assignments not stapled will lose a letter grade 

3. You must answer all questions. Failure to answer one question will result in a check minus. Failure to answer more than one question will result in a zero.

 Email:

1.  Only email it if you cannot come to class.

2.  Must be time stamped by 12:00pm Sunday.

3.  Send  a SINGLE pdf or MSWord document.

4.  I will not accept any homework by email 

Homework Assignment #1: Due 10/6
Homework Assignment #2: Due 10/27
NOTE:  There is apparently a little confusion about question #3.  When I say to use an equation to solve the problem, I mean to show what changes in the general IS equation we used in class.
Homework Assignment #3: Due 11/03
Homework Assignment #4: Due 12/17
Answer to HW #4 Q#2

Midterm
Questions from class:

MIDTERM REVIEW:

In 2008 the global financial crisis hit Freedonia particularly hard.  Assume that in Freedonia b=.25, the natural rate of unemployment is 6%, potential output is 2% and the marginal product of capital is 5%.  Initially the real interest rate equals the marginal product of capital and the risk premium is zero.  The following questions will require graphs, equations and a written explanation for full credit.

a. What does the economy look like in equilibrium, given the values above?  Answer this question with a completely labeled graph and the IS equation.

b.  If nothing  else changes, but suddenly banks get worried about the global financial crisis and they raise the risk premium from 0% to 6%, what happens to the economy?

c. What is the unemployment rate after the events in question 2b? (No graph needed)

d. What can the Federal Reserve do to fix this problem?  How effective will they be?

e. What is the unemployment rate after the Federal Reserve actions in question 2d.

f. What does the Federal Government have to do if Freedonia is going to get back to potential output?

REVIEW FOR FINAL
You can find it here