I. Introduction

II. Economic Policy Using Supply and Demand

Sept. 20 T	5. Price Controls and Taxes Price Controls Politics of Taxation Efficiency of Taxes Article: David Wessel, "Behind Tax Debate, Issues of Ethics and Economics," The Wall Street Journal, Jan. 1, 2003, pg. A1. Problem Set 2 due. Answers.
Sept. 22 Th	6. International Trade Free Trade Comparative Advantage Barriers to Trade Article: Emily Wax, "Africans Say G-8 Is Out of Touch," Wall Street Journal, July 4, 2005. Article: "Landed Gentry on the Dole," Wall Street Journal, August 24, 2005. Review: Comparative Advantage Barriers to Trade
Sept. 27 T	7. Externalities and the Environment "Free" Resources More about "Free" Resources Problem Set 3 due. Answers. Review: Exploring Free Resources Exploring the Commons

III. Perfect Competition

Sept. 29 Th	8. Production and Costs JB: Cost Functions
Oct. 4 T	9. The Competitive Firm JB: Profit Maximization of a Perfectly Competitive Firm
Oct. 6 Th	FIRST MIDTERM Covers classes 1-7. Exam  Answers
Oct. 11 T	10. Market Imperfections and Monopoly What is Wrong with Monopoly? The Theory of Few Sellers Price Discrimination Antitrust Article: Arnold C. Harberger, "Monopoly and Resource Allocation," American Economic Review Papers and Proceedings, 44(2), 1954: 77-87 .
Oct. 13 Th	11. The Labor Market Marginal Productivity and Income Derived Demand Sticky Wages Types of Unemployment Article: David Wessel, "Barbell Effect - The Future of Jobs: New Ones Arise, Wage Gap Widens," Wall Street Journal, April 2, 2004: A1 Problem Set 4 due. Answers. Review: Exploring Derived Demand
Oct. 18 T	OCTOBER BREAK
Oct. 20 Th	12. The Capital Market I Present Value Bond Prices SW, Chapter 9, pp. 183-194 and Apdx. B SW, Chapter 17, pp. 346-355 Article: Merrill Goozner, "Higher Skills, Fewer Jobs," The American Prospect, January, 2004. Review: Exploring Present Value
Oct. 25 T	13. The Capital Market II Intermediaries Instruments and Rates Portfolio Choice Speculators and Markets SW, Chapter 24, pp. 500-503 Problem Set 5 due. Answers.

IV. Neoclassical Macroeconomics

Oct. 27 Th	14. Introduction to Macroeconomic Models The Unemployment Rate Weaknesses of Unemployment Statistics Measuring Inflation Gross Domestic Product Limitations of GDP Statistics Uses of GDP SW: Chapters 22-23. Review: Exploring Unemployment Defining Unemployment Exploring GDP
Nov. 1 T	15. Money What is Money? Measuring Money The Equation of Exchange Assumptions of the Quantity Theory Commodity Moneys The Gold Standard SW, Chapter 24, pp. 506-511. Problem Set 6 due. Answers. Review: Exploring Money Measurement Exploring the Quantity Theory
Nov. 3 Th	16. Central Banks From Commodity to Bank-Debt Money Creating Money Checking Account Money Check Clearing The Federal Reserve Monetary Policy SW, Chapter 25. Article: Phil Davies, "Right on Target: A behind-the-scenes look at open market operations, the Fed's big stick of monetary policy, " The Region, December 2004: 39-48. Review: Exploring Money Creation Exploring Check Clearing 1 Exploring Check Clearing 2 Exploring Monetary Policy
Nov. 8 T	17. A Simple Neoclassical Macro Model Real Business Cycles Say's Law Problem Set 7 due. Answers. SW, Chapter 24, pp. 489-506.
Nov. 10 Th	18. Savings and Investment National Income Accounting Aggregating Markets and Sectors Review SW, Chapter 24.
Nov. 15 T	19. Government and Deficits Article: Michael Deppler, "Beyond Integration: Squaring Europe's Social Preferences with Robust Growth," Finance & Development, June, 2004: 8-13. SW, Chapter 26.
Nov. 17 Th	SECOND MIDTERM Classes 5-16 Exam  Answers

V. Keynesian Macroeconomics

Nov. 22 T	20. Business Cycles A Business Cycle Feedback Investment and Saving The Accelorator Principle The Great Depression SW, Chapter 28 (incl. appendix). Problem Set 8 due. Answers.
Nov. 24 Th	THANKSGIVING
Nov. 29 T	21. Inflation and Unemployment Reserve Reading: Stiglitz and Walsh, Chapter 31. Review: SW, Chapter 31: all except 4,11.
Dec. 1 Th	22. Household Choices Revisited Indifference Curves Deriving Demand SW, Chapter 6, pp. 109-121 and Appendix. SW, Chapter 9, Appendix A.
Dec. 6 T	Review Session Problem Set 9 due. Answers.

Dec. 8 Th

FINAL EXAM