ECON 209 Lecture Notes - Lecture 1: Financial Times, Pearson Education, Fiscal Policy
7 Jun 2018
School
Department
Course
Professor
ECON 209: Macroeconomic Analysis and Applications
Lecture 1: Introduction and Important Information
I. If you understand the markets → then you understand the complex object that is the economy
II. Difference between Microeconomics and Macroeconomics:
A. Microeconomics was about the individual firm
B. The objective is still the same (understand the economy)
1. The approach is different
C. Macroeconomics
1. How much economic activity
2. What is the volume of output
3. No longer the representative consumer
4. Average consumption (altogether consumed within the economy)
III. Going to build 2 models this course
A. Understand business cycles
1. Changes in short run
B. Understand the trend
IV. Policies
A. What happens when the economy is in recession
B. Example: Unemployment
C. Tools of the government in cases of recession, high unemployment
1. Fiscal policy: Taxes and spending
D. Inflation
1. Monetary policy (provided by the central bank)
V. Going to examine how the model is able to predict changes in prices/inflation
VI. Chapters
A. Take a look at Chapters 1, 2, 3 if you need to refresh on Microeconomics
B. The course begins with Chapter 19: What macroeconomics is about
1. About all the variables that are relevant to us
C. Chapters 21-23 are vital
1. Contains the model we build on in subsequent chapters
VII. Encouraged to get a subscription to the Financial Times
A. Through McGill in the library
B. You will see things relevant to the course
VIII. Textbook: Macroeconomics half of Economics
(15th Canadian Edition) by C. Ragan, published
by Pearson Education Canada
IX. Tutorials and Office Hours
A. TAs will hold tutorials (weekly)
B. Office hours (one-to-one discussions)
1. Starts the 3rd week of classes
X. 2 midterms
A. Midterm #1: Wednesday, February 21, in class (Multiple-choice)
B. Midterm #2: Monday, April 2, in class
C. Both are optional → the weight will be moved to the mandatory final
1. Each is worth 20%
XI. Weekly quizzes posted on myCourses (5%)
XII. Final exam is worth 55%
Document Summary
If you understand the markets then you understand the complex object that is the economy. Going to build 2 models this course: understand business cycles, changes in short run, understand the trend. X: what happens when the economy is in recession, example: unemployment, tools of the government in cases of recession, high unemployment. Inflation: fiscal policy: taxes and spending, monetary policy (provided by the central bank) Going to examine how the model is able to predict changes in prices/inflation. Encouraged to get a subscription to the financial times: through mcgill in the library, you will see things relevant to the course. Textbook: macroeconomics half of economics (15th canadian edition) by c. ragan, published by pearson education canada. Tutorials and office hours: tas will hold tutorials (weekly, office hours (one-to-one discussions, starts the 3rd week of classes.
