University of British ColumbiaDepartment of Economics

Econ 102 Section 005Principles of Macroeconomics

Spring 2014

Course Information

Time PlaceMonday 3:00-4:00pm Hebb 100WednesdayFriday

3:00-4:00pm3:00-4:00pm

Hebb 100Hebb 100

Instructor: Alfred KongOffice: Buchanan Tower 627Office Hours: Monday Wednesday 2:00-3:00pm or by appointmentEmail: alfred.kong@ubc.ca

TA: TBA TBAOffice:Office Hours:Email:

Textbook Ragan, Christopher, Macroeconomics, 14th Canadian Edition, 2014, Pearson.

Course Objective

The purpose of this introductory course in macroeconomics is to give students a thorough understanding of the principles of economics that apply to Canada as a whole. This course places particular emphasis on the study of national income and price-level determination, and also develops students’ familiarity with economic performance measures, the financial sector, stabilization policies, economic growth, and international economics. We will discuss the following issues during the semester:1) Why does GDP matter to us?2) What determines Canada’s economic growth?3) What causes unemployment?4) What causes the price level to fluctuate?5) What is the government’s role in our economy?

Course Organization

Lectures will be used to introduce and analyze major course topics and to clarify reading assignments. You should attend on a regular basis, since material and problems not covered in the text will, from time to time, be discussed. Weekly readings must be done in advance, prior to lectures. Students are responsible for all material presented in class, including announcements of exam dates, handouts, etc.

Course Website

Sample exams will be posted on Connect (http://elearning.ubc.ca/connect/). Questions for tutorials will also be posted on the website during the semester. Students are required to check the website at least once a week.

Tutorial

There is no assignment in this course. Therefore, it is extremely important for students to attend tutorials regularly as TAs will go over examples in tutorials.

Course Evaluation

Midterm 1 25% (Date: 7th February 6:00-7:15pm)Midterm 2 25% (Date: 14th March 6:00-7:15pm)Final 50%

Exam

Exams will consist of multiple-choice and problem-solving questions. The final will cover material from the entire course. To prepare for exams, students should review all the relevant chapters and class notes. Exam dates in this outline are only tentative. Students will be notified of the date of an exam about one week in advance.

Exam Policy

In exceptional cases, students may be excused from taking an exam at the scheduled time. To be excused, the student must:1. Notify the instructor of an inability to take the exam prior to the scheduled time of the exam, when possible.2. Provide proofs of inability e.g. a doctor's note.No makeup exams will be arranged. Student who missed an exam with a legitimate reason would have the weight of the missed exam moved to the rest of the exams.

Tentative Reading List and Course Outline

Week Topics Reading

1 Introduction What Macroeconomics is About Ch.19

2 What Macroeconomics is AboutThe Measurement of National Income

Ch.19Ch.20

3 A Simple Macro ModelA Simple Macro Model Continued

Ch.21Ch.22

4 A Simple Macro Model Continued Short Run Equilibrium

Ch.22Ch.23

5 Long Run Equilibrium Midterm 1 (7th February 6:00-7:15pm)

Ch.24

6 Long Run Economic GrowthMoney and Banking

Ch.26Ch.27

7 Spring Break

8 Money and Banking Ch.27

9 Interest Rates and Economic Activity Ch.28

10 Canadian Monetary Policy Midterm 2 (14th March 6:00-7:15pm)

Ch.29

11 Government Debt and Deficits Ch.32

12 International Trade Ch.33

13 Exchange Rates Ch.35

14 Review