DEPARTMENT OF ECONOMICS

UNIVERSITY OF TORONTO AT MISSISSAUGA

MICHAEL HO
E-mail: [email protected]
Phone: (905) 569-4956
Office Hours: Tuesday 1:45–2:45 PM in KN 3263

COURSE OBJECTIVES:

This course will focus on the study of macroeconomics, monetary economics, economic stabilization, capital
markets and international monetary economics. Theories of output, employment and the price level in closed and
open monetary economies are described; and the costs and benefits of stabilization policies in the context of these
theories are identified.

REQUIRED COURSE MATERIAL:

Macroeconomics (5th Canadian Edition), by Olivier Blanchard and David Johnson (ISBN: 9780132164368).
Please be aware that should you choose to use an earlier version of this textbook, you are responsible for noting
the differences between the earlier edition you choose to use and the edition used by this course

PREREQUISITES & EXCLUSIONS:

Prerequisites: ECO100Y5 (63%) and a CGPA of 2.0

Prerequisites are strictly checked and enforced and must be completed before taking a course. By taking this
course you acknowledge that you will be removed from the course at anytime if you do not meet all requirements
set by the Department of Economics. For further information can be found in the 2019-2020 Academic Calendar:
https://student.utm.utoronto.ca/calendar.

Corequisite: MAT133Y5/MAT134Y5/(MAT132H5,MAT134H5)/135Y5/(MAT135H5,MAT136H5)/137Y5

Exclusions: ECO208Y5/ECO209Y5
GRADE ALLOCATION:

Three term tests (1 hour each) on October 22, December 3, and February 11 carrying a total of 45% and final
examination (3 hours) 40%. These term tests are non-cumulative and only include material covered since the
last test. The final examination will be held during the final examination period in April and will be cumulative.

Students CANNOT petition to re-write any test or exam once it has begun. If you are feeling ill, please do not
start the assessment and seek medical attention immediately. You must have a physician fill out a U of T Student
Medical Certificate and submit a request via the online Special Consideration Request form at
https://utmapp.utm.utoronto.ca/SpecialRequest within 24 hours.

Group project (15%) with 3,000 words on the analysis of Canadian macro relationships to be submitted in class
on March 31 (no late submission or soft copy will be accepted). Each group can have at most five members.

POLICY ON MISSED ASSESSMENT:

Informing Your Professor and Submitting Appropriate Documentation: The following steps must be completed
in order to be considered for academic accommodation for any missed in-class exercise/test.

1. Students must inform their professor in writing (e-mail is acceptable) within 24 hours of a test date of any
circumstances that prevent them from writing a test.
2. Students must complete an online Special Consideration Request at
https://utmapp.utm.utoronto.ca/SpecialRequest. Students who miss a test due to circumstances beyond their
control (e.g. illness or an accident) can request that the Department grant them special consideration. You
must inform your instructor within 24 hours and you have 48 hours from the date of the missed test to submit
your online request (late requests will NOT be considered without a "letter of explanation" as to why the
request is late). Note: The system only supports Microsoft Internet Explorer and Firefox for the time being.
3. Original supporting documentation (e.g. Verification of Student Illness or Injury form, accident report, etc)
MUST BE SUBMITTED to the DROP BOX located outside Room 3274, Innovation Complex Building.
Supporting documentation is required within one (1) week of submitting your online request. Note: If you
missed your test for a reason connected to your registered disability, please be advised that the department
will accept documentation supplied by the UTM AccessAbility Resource Centre.
Note: (i) ROSI declarations are not accepted as supporting documentation.
(ii) If your reason for absence is due to a last-minute flight due to a family emergency (illness/death
etc.) you must provide your flight itinerary INCLUDING the date the flight was purchased as
well as boarding passes in addition to proof of death/illness/accident.
4. Verification of Student Illness or Injury forms: Documentation MUST show that the physician was
consulted within ONE day of the test date. A statement merely confirming a report of illness made by the
student is NOT acceptable (such as, “This patient tells me that he was feeling ill on that day.”). Verification
of Student Illness or Injury forms can be found on the Office of the Registrar’s webpage.
http://www.illnessverification.utoronto.ca/index.php
5. Extenuating Circumstances: Students must notify the professor within 24 hours and you have 48 hours
from the date of the missed test to submit your online request to the Special Consideration Request at
https://utmapp.utm.utoronto.ca/SpecialRequest. If support has been obtained from someone other than a
practitioner listed on the U of T Verification of Student Illness or Injury form then a Verification of
Extenuating Circumstances form is acceptable.
https://www.utm.utoronto.ca/registrar/sites/files/registrar/public/shared/pdfs/forms/Verification%20of%
20Extenuating%20Circumstance%28s%29.pdf
Other documentation can include, but is not limited to: letter of support from AccessAbility, automobile
collision or police reports, death certificate, and supporting documentation from employers, lawyers and
other related personnel.
6. Declaration of Absence - Absence must be declared on the day of or day after your absence on ACORN in
order to be considered for an academic accommodation for any course work such as missed tests, late
assignments, and final exams. Absences include those due to illness, death in the family, religious
accommodation or other circumstances beyond your control.

Please note that the written explanation and documentation that you submit represents an appeal from you,
requesting the opportunity to account for that portion of your grade in some other manner. If an appeal is not
received, or if the appeal is deemed unacceptable, you will receive a grade of zero for the item you missed. If the
appeal is granted – that is, your reason for missing the item is considered acceptable by the professor – then a
mechanism for accounting for the grade value of the missed item will be used.

Consult the Office of the Registrar should your absence be lengthy or affect multiple courses.

In the event of a missed exam, please refer to the Deferred Exam instructions by the Office of the Registrar.
Proper documentation will be required.

Note: It is your responsibility to ensure your email account is working and able to receive emails. Claims that a
Departmental decision was not received will NOT be considered as a reason for further consideration.

Note that holidays and pre-purchased plane tickets, family plans, your friend’s wedding, lack of preparation, or
too many other tests/assignments are not acceptable excuses for missing a quiz, a test, an item of term work, or
an extension.

Students missing only one term test due to medical or other legitimate reasons and have submitted valid
supporting document within one week of the missed test will be required to write the comprehensive makeup
test in late March with time, date, and venue to be determined. No allowance will be made for any possible time
conflict and no excuses of any kind will be accepted for missing the makeup test. Hence, failing to write the
makeup test will result in a zero. Those missing more than one term test must meet with me to decide whether it
is to his/her best interest to remain in this course.

COMMUNICATIONS:

All announcements (besides those made in class) will be posted on Quercus. Check for updates on a daily basis.
I prefer handling questions in person during office hours or in class rather than through email or phone. Email
should be for emergency only and I will only respond to email sent through UTOR email account for record-
keeping and identification purposes. Put “ECO202” in the message title as this will help draw my attention to
your email. Email should not be seen as a means to receive private tutorial or review material that was covered
in class but you missed.

EQUITY STATEMENT AND ACADEMIC RIGHTS:

The University of Toronto is committed to equity and respect for diversity. All members of the learning
environment in this course should strive to create an atmosphere of mutual respect. As a course instructor, I will
neither condone nor tolerate behaviour that undermines the dignity or self-esteem of any individual in this course
and wish to be alerted to any attempt to create an intimidating or hostile environment. It is our collective
responsibility to create a space that is inclusive and welcomes discussion. Discrimination, harassment and hate
speech will not be tolerated. If you have any questions, comments, or concerns you may contact the UTM Equity
& Diversity Office at [email protected].
You, as a student at UTM, have the right to:
• obtain a course syllabus either through accessing a copy on Quercus, through the UTM Timetable (accessible
through the Office of the Registrar website), or one can be provided by the instructor. The course syllabus
must be available/provided at the beginning of a course;
• rely upon the information detailed within a course syllabus. An instructor may only change methods of
evaluation, or their relative weight, by following the University Assessment and Grading Practices Policy
Provision Part B: 1.3.
• refuse to use turnitin.com (you must be offered an alternative form of submission);
• have access to your instructor for consultation during a course, or follow up with the unit Chair or Director if
the instructor is unavailable;
• ask the person who marked their term work for a re-evaluation if they feel it was not fairly graded. Students
must make any inquiries about the mark on a graded piece of work within one month of the return date of the
work. If the student is not satisfied with a re-evaluation, they may appeal to the instructor in charge of the
course if the instructor did not mark the work. If the student’s work is remarked, they must accept the resulting
mark. They may only appeal a mark beyond the instructor if the term work was worth at least 20% of the
course mark. See Re-marking Pieces of Term Work of this document for full details of the process;
• receive at least one significant mark (weighted at 15% for H courses, 25% for Y courses) by the last scheduled
class prior to the academic drop deadline (the academic drop date), with one exception: for courses that run
the entire Fall/Winter Session (Y5Y or H5Y courses), the deadline shall be the last regular class meeting of
the first week of classes in January;
• submit handwritten essays, so long as they are neatly written;
• have no assignment worth 100% of the student’s final grade;
• not have a term test or combination of term tests in an individual course be worth greater than 25% in the last
two weeks of class;
• retain intellectual property rights to their term work;
• receive all their assignments, tests, and other term work once graded;
• view their final exams. To see a final exam, students must submit an online Exam Reproduction Request
within 6 months of the date of the exam. There is a small non- refundable fee (please note that this process is
overseen by the Office of the Registrar);
• privacy of their final grades; and
• arrange for representation from Downtown Legal Services (DLS), a representative from the UTM Students’
Union (UTMSU), and/or other forms of support if they are charged with an academic offence.

ACADEMIC INTEGRITY/HONESTY OR ACADEMIC OFFENSES:

Honesty and fairness are considered fundamental to the university's mission, and, as a result, all those who violate
those principles are dealt with as if they were damaging the integrity of the university itself. When students are
suspected of cheating or a similar academic offence, they are typically surprised at how formally and seriously
the matter is dealt with -- and how severe the consequences can be if it is determined that cheating did occur. The
University of Toronto treats cases of cheating and plagiarism very seriously.

Examples of offences for which you will be penalized include (but are not limited to):
• Using any unauthorized aids on an exam or test (e.g., "cheat sheets," cell phones, electronic devices, etc.)
• Representing someone else's work or words as your own -- plagiarism
• Falsifying documents or grades
• Purchasing an essay
• Submitting someone else's work as your own
• Submitting the same essay or report in more than one course (without permission)
• Looking at someone else's answers during an exam or test
• Impersonating another person at an exam or test or having someone else impersonate you
• Making up sources or facts for an essay or report.
As a student it is your responsibility to ensure the integrity of your work and to understand what constitutes an
academic offence. If you have any concerns that you may be crossing the line, always ask your instructor. Your
instructor can explain, for example, the nuances of plagiarism and how to use secondary sources appropriately;
he or she will also tell you what kinds of aids -- calculators, dictionaries, etc. -- are permitted in a test or exam.
Ignorance of the rules does not excuse cheating or plagiarism.

It is your responsibility as a student at the University of Toronto to familiarize yourself with, and adhere to, both
the Code of Student Conduct and the Code of Behaviour on Academic Matters. This means, first and foremost,
that you should read them carefully.

This information is taken from a series of University of Toronto policies written to help students understand the
university's rules and decision-making structures. To view these policies, please go to
www.governingcouncil.utoronto.ca/policies.htm.

All of the policies and procedures surrounding academic offences are dealt with in one policy: "The Code of
Behaviour on Academic Matters." The full text is located in the back of this calendar. Students should also
thoroughly review the information at the Academic Integrity web page
https://www.utm.utoronto.ca/academic-integrity/.
• The Code of Student Conduct is available from the U of T Mississauga website (Registrar > Academic
Calendar > Codes and Policies) or in your print version of the Academic Calendar.
• The Code of Behaviour on Academic Matters is available from the U of T Mississauga website (Registrar >
Academic Calendar > Codes and Policies) or in your print version of the Academic Calendar.

Another helpful document that you should read is “How Not to Plagiarize,” by M. Proctor.

ACCESSIBILITY:

U of T Mississauga and the AccessAbility Resource Centre are committed to the full participation of students
with disabilities in all aspects of campus life. The AccessAbility Resource Centre provides academic
accommodations and services to students who have a physical, sensory, or learning disability, mental health
condition, acquired brain injury, or chronic health condition, be it visible or hidden. Students who have temporary
disabilities (e.g., broken dominant arm) are also eligible to receive services. All interested students must have an
intake interview with an advisor to discuss their individual needs. Students who require accommodation are
advised to visit the AccessAbility Resource Centre as early as possible to have their needs assessed, as it may
take some time to process the application. For more information please contact the centre at:
Room 2037, South Bldg.
Tel/TTY: 905-569-4699
E-mail: [email protected]
Web: www.utm.utoronto.ca/access

POLICY ON RELIGIOUS OBSERVANCES:

As a student at the University of Toronto, you are part of a diverse community that welcomes and includes
students, staff, and faculty from a wide range of backgrounds, cultural traditions, and spiritual beliefs. For my
part, I will make every reasonable effort to avoid scheduling tests, examinations, or other compulsory activities
on religious holy days not captured by statutory holidays. Further to University Policy, if you anticipate being
absent from class or missing a major course activity (like a test, or in-class assignment) due to a religious
observance, please let me know as early in the course as possible, and with sufficient notice (a minimum of three
weeks is recommended), so that we can work together to make alternate arrangements.
For more information about the University of Toronto’s Policy on Scheduling of Classes and Examinations and
other Accommodations for Religious Observances please review the University’s Religious Accommodation
Overview.

It is the policy of the University of Toronto to arrange reasonable accommodation of the needs of students who
observe religious holy days other than those already accommodated by ordinary scheduling and statutory
holidays.

As with any academic accommodation request, students must submit an on-line Special Consideration Request
at https://utmapp.utm.utoronto.ca/SpecialRequest.

IMPORTANT:

Attending lectures and tutorials are mandatory and all term tests are written in class. Also, a significant portion
in each term test and the final examination comes from materials discussed in lectures and tutorials. In fact,
solutions to tutorial problems will only be shown in tutorials.

TOPICS:

1. Introduction: Chapters 1 & 2

2. Short-run Analysis:
2.1 The Goods Market – Chapter 3
2.2 Financial Markets – Chapter 4 (Sections 4.1 & 4.2)
2.3 The IS-LM Model – Chapter 5 (except Section 5.6)
2.4 Openness in Goods Markets – Chapter 6 (Sections 6.1 & 6.2) and Chapter 7
2.5 Financial Markets and Fixed Exchange Rates – Chapter 8 (Sections 8.2 & 8.5)

3. Medium-run Analysis:
3.1 The Labour Market – Chapter 9 (except Section 9.6)
3.2 The AS-AD Model – Chapter 10 (except Section 10.6), Chapter 11 (Section 11.4)
3.3 The Phillips Curve – Chapter 12 (Sections 12.1 & 12.2)
3.4 Inflation, Economic Growth, and Money Growth – Chapter 13 (except Section 13.5)
3.5 Exchange Rate Regimes – Chapter 14 (Sections 14.1 & 14.2)

4. Long-run Analysis:
4.1 The Facts of Growth – Chapter 15 (except Section 15.2)
4.2 Saving, Capital Accumulation, and Output – Chapter 16
4.3 Technological Progress and Growth – Chapter 17 (except Section 17.3)
4.4 Labour and Population Growth – Chapter 18 (Section 18.1)