University of Waterloo

Department of Economics
ECON 402-001, Spring 2014
acroeconomic !"eory #
Co$rse O$tline
%rofessor& Kate Rybczynski
'ect$res& 2:30-3:50pm (' 20), Tues & Thurs
Office& 242 Hagey Ha
*o$rs& Tues!ay, Thurs!ay "0:30-"2:00n##n, #r by app#intment
e-mail& k rybczyn at u$ater##%ca
+e, page& http:&&$$$%arts%u$ater##%ca&'krybczyn&402&
(This $eb page is pass$#r! pr#tecte!, i) y#u are unabe t# atten! the )irst cass, e-mai me )#r the pass$#r!*

Co$rse Description&
This c#urse intr#!uces stu!ents t# a!+ance! macr#ec#n#mic t##s use! )#r anaysis #) ec#n#mic !ynamics%
,mphasis is pace! #n the in!i+i!ua !ecisi#n making that un!eries aggregate beha+i#ur in a !ynamic
)rame$#rk% The m#!es !e+e#pe! in this c#urse are use! t# anayze ec#n#mic gr#$th, unemp#yment,
in)ati#n, c#nsumpti#n an! sa+ings% ,mpirica techni-ues use! t# test the pre!icti#ns #) the m#!es are
!iscusse!%
. high e+e #) mathematica an! -uantitati+e anaysis is re-uire! in this c#urse% /tu!ents $eak in math are
a!+ise! t# brush up #n cacuus, inear agebra an! statistics 0R12R t# the start #) the term%
Co$rse aterials&
The te3t b##k )#r this c#urse is .!+ance! 4acr#ec#n#mics, 4
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,!iti#n, by 5a+i! R#mer%
.th#ugh the 4
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e!iti#n is at the b##kst#re, i) y#u $ish t# purchase the 2
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#r 3
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e!iti#n use!, it c#+ers the c#re
materia am#st as $e% The 2
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,!iti#n te3t is #n reser+e at 5ana 0#rter 6ibrary%
On 'ine& 6ecture n#tes, .nn#uncements, /tu!y 7uesti#ns an! .ssignments%
Co$rse -e.$irements an/ 0ra/ing Sc"eme&
.ssignments (4* 58, "08, "08, an! 58 5ue 4ay 22, 9une "0, 9uy :, an! 2;
4i!-term ,3am 308 Tues!ay, 9une 24, in cass
<ina ,3am 408
!"e -$les for ECON 402&
.ssignments must be submitte! =# 6ater than "":5;pm in the 402 assignment !r#p b#3 (#utsi!e HH2"0* #n
the !ue !ate% .ny misse! assignments $i ha+e their $eight aut#maticay trans)erre! t# the )ina e3am
pr#+i!e! y#u c#mpete su))icient #ther c#urse materia% >#u may $#rk t#gether, but y#u must submit
in!i+i!ua assignments an! ackn#$e!ge a hep%
1) y#u miss the mi!term, the $eight #) this test $i aut#maticay g# t# y#ur )ina e3am pr#+i!e! y#u c#mpete
su))icient #ther c#urse materia% =# make-up $i be he!% 1) y#u !# better #n the )ina than #n the mi!term, the
$eight is aut#maticay shi)te! t# y#ur )ina e3am, s# it is in y#ur best interest t# $rite the mi!term%
. stu!ent $h# misses the <ina ,3am may submit a re-uest t# $rite a make-up (!e)erre!* e3am% The make-up
e3am $i be substantiay !i))erent than that $ritten by the rest #) the cass% =#te that $riting a !e)erre! )ina
e3am is a pri+iege n#t a right% /tu!ents appying t# $rite a make-up are re-uire! t# )i #ut a ?re-uest )#r a
!e)erre! )ina e3aminati#n@ )#r E(C* misse! e3am% . c#py #) the !e)erre! e3am re-uest )#rm, a#ng $ith
!epartmenta gui!eines, is a+aiabe #n-ine at http:&&$$$%ec#n#mics%u$ater##%ca&5e)erre!,3ams%htm% The
c#mpete! )#rm an! a necessary !#cumentati#n must be submitte! t# the instruct#r $ithin 4: h#urs #) the
sche!ue! e3am% 1n a!!iti#n, pease in)#rm me +ia y#ur A%B% emai that y#u $i be submitting the re-uest%
>#u $i be n#ti)ie! at y#ur A%B% e-mai $hether #r n#t y#ur re-uest is grante!% .ny stu!ent $h# )ais t# $rite
the !e)erre! e3am $i aut#maticay recei+e a gra!e #) zer# #n that e3am%
!opics&
12 1ntro/$ction
-c#mm#n -uesti#ns an! m#!es
-basic t##s an! meth#!s
112 0ro+t" (chapters ", 4, 3 & 2*
-representati+e agent
-en!#gen#us gr#$th
-c#n+ergence
-#+erapping generati#ns (26C*
1112 3$siness Cycles (chapter 5*
-basic )acts
-rea business cyce (RDE* the#ry
-en!#gen#us business cyces
142 Unemployment 5 'a,o$r (chapter "0*
-e))iciency $age
-search & matching
FF.nn#uncements an! a!!iti#na rea!ing suggesti#ns $i be p#ste! #n the c#urse $eb page% /tu!ents are
a!+ise! t# check this an! the ann#uncements page )re-uenty%FF
>#ur Rights an! Resp#nsibiities:
Academic Integrity: In order to maintain a culture of academic integrity, members of the University of
Waterloo are expected to promote honesty, trust, fairness, respect and responsibility.
Academic Integrity website (Arts: http:!!arts.uwaterloo.ca!arts!ugrad!academic"responsibility.html
Academic Integrity #ffice (University: http:!!uwaterloo.ca!academicintegrity!
$iscipline: A student is expected to %now what constitutes academic integrity, to avoid committing
academic offences, and to ta%e responsibility for his!her actions. A student who is unsure whether an
action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism,
cheating or about &rules' for group wor%!collaboration should see% guidance from the course
professor, academic advisor, or the Undergraduate Associate $ean. When misconduct has been found
to have occurred, disciplinary penalties will be imposed under (olicy )* + ,tudent $iscipline. -or
information on categories of offenses and types of penalties, students should refer to (olicy )* .
,tudent $iscipline, http:!!www.adm.uwaterloo.ca!infosec!(olicies!policy)*.htm
/rievance: A student who believes that a decision affecting some aspect of his!her university life has
been unfair or unreasonable may have grounds for initiating a grievance. 0ead (olicy )1 . ,tudent
(etitions and /rievances, ,ection 2, http:!!www.adm.uwaterloo.ca!infosec!(olicies!policy)1.htm
Appeals: A student may appeal the finding and!or penalty in a decision made under (olicy )1 . ,tudent
(etitions and /rievances (other than regarding a petition or (olicy )* . ,tudent $iscipline if a ground
for an appeal can be established. 0ead (olicy )3 . ,tudent Appeals,
http:!!www.adm.uwaterloo.ca!infosec!(olicies!policy)3.ht m
Accommodation for ,tudents with $isabilities: 4ote for students with disabilities: 5he AccessAbility ,ervices
office, http:!!uwaterloo.ca!disability.services! located in 4eedles 6all, 0oom **73, collaborates with all
academic departments to arrange appropriate accommodations for students with disabilities without
compromising the academic integrity of the curriculum. If you re8uire academic accommodations to lessen the
impact of your disability, please register with the A, office at the beginning of each academic term.
9ross.listed course: (lease note that a cross.listed course will count in all respective averages no matter under
which rubric it has been ta%en. -or example, a (6I:!(,9I cross.list will count in a (hilosophy ma;or average,
even if the course was ta%en under the (olitical ,cience rubric