ECN5401, ADVANCED MACROECONOMIC THEORY

Dr. ALI R. MOSHTAGH

2371 COLEMAN HALL

(217) 581 - 2916

amoshtagh@.eiu.edu

 

OFFICE HOURS:   2:00 pm - 3:00 pm Monday -Thursday

 

COURSE DESCRIPTION:

Advanced analysis of determination of income, employment, investment, and wages; Inquiry into the nature of equilibrium and equilibrium and equilibrating process.                                              

COURSE OUTLINE:

A. INTRODUCTION

a.The Science of Macroeconomics

b.How Economists Think

c. Model building

d. General features of economic models

e.Nobel Macroeconomists

B. THE DATA OF MACROECONOMICS

a. Gross Doemstic Product

b. Income, Expenditure, and the Circular Flow

c. Rules for Computing GDP

d. Real GDP Vs. Nominal GDP

e. The GDP Deflator 

f. The Components of Expenditure 

C. NATIONAL INCOME: WHERE IT COMES FROM AND WHERE IT GOES

a. The Circular Flow of Dollas Through the Economy

b. The Factors of Production

c. Production Function

d. Factor Prices

e. The Decisions Facing the Competitive Firm

f. The Firm's Demand for Factors

g. The Division of National Income

  • Consumption
  • Investment
  • Government Purchases 

D. MONEY AND INFLATION

a. What is Money?

b. The Functions of Money

c. How the Quantity of Money is Measured

d. The Quantity Theory of Money

e. Inflation and Interest Rates

E. THE OPEN ECONOMY   

a. The International Flows of Capital and Goods

b. Saving and Investment in a Small Open Economy

c. Exchange Rates

d. The United States as a Large Open Economy

F. UNEMPLOYMENT

a. Job Loss, Job Finding, and the Natural Rate of Unemployment

b. Job Search and Frictional Unemployment 

c. Real-Wage Rigidity and Structural Unemployment       

d. Labor-Market Experience: The United States 

G. ECONOMIC GROWTH I: CAPITAL ACCUMULATION AND POPULATION GROWTH  

a. The Accumulation of Capital

b. The Golden Rule Level of Capital

c. Population Growth

H. ECONOMIC GROWTH II: TECHNOLOGY, EMPIRICS, AND POLICY  

a. Technological Progress in the Solow Model

b. From Growth Theory to Growth Empirics

c. Policies to Promote Growth

d. Beyond the Solow Model: Endogenous Growth Theory 

METHODS OF EVALUATION:

Grade Policy:

Your grades will be based on the accumulated total of your scores on the following:

Mid-Term Exam 100 Points, October 14 (Tentative)

Final Exam 100 Points, Wednesday, December 15, 8:00 am - 10.00 am

Assignments: 50 Points

Term Paper 50 Points

Total 300 Points

NOTE 1:

No exam grades will be eliminated. No exams will be made up unless arrangements have been made PRIOR TO THE SCHEDULED EXAM DATE. Messages left on my voice mail will not be considered as proper arrangements.

NOTE 2:

Academic integrity - Students are expected to maintain principles of academic integrity and conduct as defined in EIU's Code of Conduct (http://www.eiu.edu/judicial/studentconductcode.hph). Violations will be reported to the Office of Student Standards.

NOTE 3:

Students with disabilities - If you are a student with a documented disability in need of accommodations to fully participate in this class, please contact the Office of Student Disability Services (OSDS). All accommodations must be approved through OSDS. Please stop by McAfee Gym, Room 1210, or call 217-581-6583.

NOTE 4:

Students who are having difficulty achieving their academic goals are encouraged to contact the Student Success Center (http;//www.eiu.edu/~success) for assistance with time management, test taking, note taking, avoiding procrastination, setting goals, and other skills to support academic achievement. The Student Success Center provides individualized consultations.

NOTE 5:

"Each faculty member has the authority to establish the conditions for student cell phone use in his/her classroom. These conditions are at the discretion of the faculty member, but will provide that a university-initiated campus security text message can be received and disseminated to those in the classroom in a timly manner." Eastern position on cell phones in classrooms.

My position on cell phones: there is absolutely NO TEXTING allowed in class, you may NOT hold your cell phones in your hands in class, and you may NOT use your cell phones as calculators during exams.

Reference and Text Book:

Gregory Mankiw, MACROECONOMICS, Seventh Edition, Worth Publishing, New York, NY, 2010.

YOU MUST BRING YOUR BOOKS TO CLASS. PLEASE!

SPECIAL DATES IN THE FALL TERM 2021 CALENDAR

Classes Begin: August 23, 2021

Last Day to Drop a Course With No Grade: September 3

Labor Day Observance-No Classes: September 6

Mid Term: October 13

Fall Break/No Classes: October 15

Last Day to Withdraw from a Course or University with W: November 5

Thanksgiving Break: November 22 - 26

Last Class Day: December 10

Final Examinations: December 13 - 17

Deadline to Return Books/TRS/No Fine 3 p.m.: December 17

Commencement: December 18

Last Day to Complete Graduation Requirements: January 7, 2022