Intermediate Macroeconomics
                                  
                                            
                                                                   
Shandong University of Finance and Economics
Course Code：01301111
Total Number of Instruction Hours: 51
Number of Credits：3
About this Course
This course provides topics regarding the economy as a whole. It offers a balance between short-run and long-run issues in macroeconomics. It covers both short-run topics, such as the business cycle, stabilization policy, short-run effects of fiscal and monetary policy, and long-run topics, such as the natural rate of unemployment, persistent inflation, and long-run effects of fiscal and monetary policy. This course integrates the insights of Keynesian and Classical theories. Although the Keynesian economics provides foundation for much of our current understanding of economic fluctuations, it is important to remember that classical economics provides the right answers to many fundamental questions. 
Finally, this course emphasizes that macroeconomics is an empirical discipline motivated and guided by a wide array of experience. It contains numerous case studies and real world examples, connecting the macroeconomic theory to the real world cases. 
Required Textbook
N. Gregory Mankiw, Macroeconomics, 9th edition, Macmillan Education, 2016.
If you are interested, you can always purchase the text directly from publisher (or rent it). I have provided a link below where you can do that: 
Student Store
Learning Outcomes
Based on the CFA curriculum, at the end of this semester, you should be able to:
1.      Calculate and explain gross domestic product (GDP) using expenditure and Income approaches
2.      Compare the sum-of-value-added and value-of-final-output methods of calculating GDP
3.      Compare nominal and real GDP and calculate and interpret the GDP deflator
4.      Compare GDP, national income, personal income, and personal disposable income
5.      Describe the functions and definitions of money
6.      Distinguish between the monetary policy and fiscal policy
7.      Explain the money creation process
8.      Describe the demand for and supply of money
9.      Describe the Fisher effect
10.  Describe roles and objectives of central banks
11.  Contrast the cost of expected and unexpected inflation
12.  Describe the tools used to implement monetary policy
13.  Explain inflation, hyperinflation, disinflation, and deflation
14.  Describe the quantity theory of money and its relation with inflation
15.  Explain the construction of indices used to measure inflation
16.  Compare inflation measures, including their uses and limitations
17.  Distinguish between cost-push and demand pull-inflation
18.  Describe types of unemployment and measures of unemployment  
19.  Explain the fundamental relationship among saving, investment, the fiscal policy, and trade balance (i.e., net exports)
20.  Describe the relationship between international capital flows and net exports
21.  Compare nominal exchange rate and real exchange rate and their effects on net exports
22.  Explain the relationship between monetary policy, inflation, interest rate, and exchange rates
23.  Determine whether a monetary or fiscal policy is expansionary or contractionary
24.  Explain the interaction between monetary and fiscal policy
25.  Distinguish between the following types of macroeconomic equilibria: Long-term full-employment, short-run recessionary gap, short-run inflationary gap; and short-run stagflation
26.  Describe business cycle and its phases
27.  Explain how a short-run macroeconomic equilibrium may occur at a level above or below full-employment output
28.  Analyze the effect of combined changes in aggregate supply and demand on the economy
29.  Explain the IS and the LM curves and how they combine to generate the aggregate demand curve both in a closed economy and open economy
Chapters to be covered
Chapter 1:  The science of macroeconomics   
Chapter 2:  Data of Macroeconomics   
Chapter 3:  National Income: Where It Comes from and Where It Goes
Chapter 4:  The Monetary System: What It Is and How It Works  
Chapter 5:  Inflation: Its Causes, Effects, and Social Costs 
Chapter 6:  The Open Economy and Appendix
Chapter 7:  Unemployment and the Labor Market          
Chapter 10: Introduction to Economic Fluctuations   
Chapter 11: Aggregate Demand I: Building the IS-LM Model 
Chapter 12: Aggregate Demand II: Applying the IS-LM Model
Chapter 13: The Open Economy Revisited: The Mundell-Fleming Model and the        Exchange Rate Regime
Appendix to Chapter 13.
Tests/Quizzes/Homework Assignments
There will be two quizzes (15% each), and two tests (30% and 40%).  Quizzes contain multiple choice questions and tests contain multiple choice questions, short-essays, and problems.  The dates for each quiz/test will be announced in class.
Quiz 1:   Chapters 1-3 
Test 1:    Chapters 1-5 
Quiz 2:   Chapters 6, 7, 10 
Test 2:    Chapters 6,7,10-13 
Class attendance
You are expected to attend each class. The topics we will be covering are like building blocks; each topic builds upon previous topics.  So, make every attempt to come to class.
Academic Misconduct
Exams, quizzes, and homework assignments must represent your understanding of the materials.  The penalty of cheating is an F in the course.