Economics 320A
Macroeconomic Theory II
Fall Term 1999/2000
- Instructor: M.F.J. Prachowny
- Dunning 309
- 533-2267
- martinp@qed.econ.queensu.ca
- Office hours: for the final exam - Monday, Dec. 6 to Thursday, Dec. 9
from 2:00 to 4:00pm, each day.
ECON320B, offered in the Winter Term , will be taught by a different
instructor, David Love. Contact him for further information at 533-2261,
Dunning 348.
Textbook: M. Prachowny, Advanced
Macroeconomics:
Theory and Policy,
(manuscript with sage green cover - AMS Publishing and Copy
Centre)
The final exam is scheduled to be written
on Friday, December 10th, from 9:00 to 12:00 am in the
Bartlett Gym of the Physical Education Centre.
Topics and Readings:
I. The Underpinnings of the Macromodel
- 1. Consumption expenditures: Ch. 2, beginning to p. 27
- 2. Investment decisions: Ch. 2, remainder from p. 27
- 3. Demand and supply in the money market: Ch. 3
- 4. The labour market: Ch. 4
II. The Complete IS-LM-AS Macromodel
- 1. Deriving the AD curve from the IS and LM curve: Ch. 5, pp.
115-37
- 2. The AS curve: Ch. 5, pp. 137-46
- 3. Long-run properties of the model: Ch. 5, pp. 146-56
III. Interpretation and Policy Implications of the Model
- 1. Stochastic events and expectations processes: Ch. 6, pp. 161-75
- 2. Policy effectiveness: Ch. 6, pp. 175-89
- 3. The interventionist position: Ch. 6, pp. 189-208
IV. Open-economy Macroeconomics
- 1. Adjustments to the basic IS-LM-AS model, Ch. 9
- 2. Stabilization in an open economy, Ch. 10
Each chapter also has an appendix devoted to mathematical derivations.
Typically, these will not be covered in class; it is better for each
student to work through this material individually. Chs. 7 and 8 will not
be covered in this version of the course.