Principles of Macroeconomics
Taught by Luis A. Sosa

Contact Information

Instructor: Luis A. Sosa
Office: 310 Engineering Hall
Office Hours: Monday and Tuesday: 5:15 - 6:15 PM, Friday: 4:00 - 5:00 PM
Phone: (303)-384-2207
E-mail: luissosa@Mines.EDU
Teaching Assistants: Catherine Keske-Handley, Sections: B, C, and D.
E-Mail: ckeskeha@Mines.EDU. Office: 125 Engineering Hall
María Sánchez, Sections: A and E
E-Mail: mtsanche@Mines.EDU. Office: 125 Engineering Hall

Goal

This course will provide an introduction to contemporary macroeconomic concepts and analysis. Macroeconomics is defined as the study of the behavior of the economy as an aggregate. Topics include the level, fluctuations, and growth of national income, and policies designed to achieve economic goals.

Course Description

Analysis of gross domestic output and cyclical variability, plus the general levels of prices and employment. The relationship between output and financial markets that affects the level of economic activity. Evaluation of government institutions and policy options for stabilization and growth. International trade and balance of payments. Students may satisfy the economics core requirement by taking the EBGN311/312 sequence instead of EBGN211. Students considering a major in economics are advised to skip EBGN211 and begin with the EBGN311/312 sequence. 3 hours lecture; 3 semester hours. (CSM, Undergraduate Bulletin, 2001-2002)

Textbooks

Karl E. Case and Ray C. Fair, Principles of Macroeconomics, Prentice Hall, 6th edition; and the accompanying Study Guide.

Course Outline

  1. Introduction
    1. Review of Mathematics and Graphs
    2. Introductory Concepts
  2. Basic Concepts and Problems in Macroeconomics
    1. GDP and Economic Growth
    2. Unemployment and Inflation
  3. Analytical Principles and Public Policy
    1. The Goods Market and Fiscal Policy
    2. The Money Market and Monetary Policy
    3. Combining the Goods and Money Markets
    4. Aggregate Supply and Aggregate Demand
  4. Issues and Debates
    1. Inflation
    2. The Labor Market, Unemployment, & Inflation
    3. Economic Growth
  5. Open-Economy Macroeconomics
    1. Exchange Rates and Open-Economy Macroeconomics
    2. Developing Countries

Homework Assignments

There will be five (5) graded homework assignments. They will not be accepted past the due date. Only the highest four (4) grades will be considered for calculating the corresponding average. The schedule for these homework assignments is the following:

Homework 1 (due September 4, 2002)
Homework 2 (due September 30, 2002)
Homework 3 (due October 14, 2002)
Homework 4 (due November 6, 2002)
Homework 5 (due November 27, 2002)

Quizzes

There will be five (5) quizzes that will be held during recitations. They will include only multiple-choice questions. There will be no make-up quizzes. Nevertheless, the lowest grade of these quizzes will not be considered. The schedule for these quizzes is the following:

Quiz #1 September 5/6, 2002 in recitation
Quiz #2 September 26/27, 2002 in recitation
Quiz #3 October 17/18, 2002 in recitation
Quiz #4 November 7/8, 2002 in recitation
Quiz #5 November 21/22, 2002 in recitation

Exams

Exams are closed book and in-class exams. If you are unable to take any of the hour-exams at the scheduled time because of intercollegiate competition, illness, or an emergency, and if you notify me of your situation (in advance unless it is an extreme emergency), I will allow you to take a comprehensive make-up exam at a time to be arranged at the end of the semester.

Hour Exam #1
Time: Wednesday, October 2, 2002 in class
Percent of Grade: 25%
Practice Exam: Part 1, Part 2, Part 3, Part 4, and Solutions (all in PDF)
Exam (Solutions): Test A and Test B
Hours Exam #2
Time: Monday, November 11, 2002 in class
Percent of Grade: 25%
Practice Exam: Practice Exam (PDF -- 3.59MB); Solutions.
Exam (Solutions): Test A and Test B
Final Exam (Cumulative)
Time: Tuesday, December 10, 2002 from 1:00 - 3:00 PM
Percent of Grade: 30%
Practice Exam: Practice Exam (PDF -- 600K); Solutions.

Grades

There are 100 possible points in the course. Letter grades are based on total points and not on an average of letter grades. The final grade will be computed as follows:

Quizzes (average) 10%
Homework Assignments 10%
1-hour Exam # 1 25%
1-hour Exam # 2 25%
Final Exam (cumulative) 30%

Exercises



Updated Monday, December 9, 2002 by Douglas Baldwin