Download Economics 211syls13cg

ECONOMICS 211
MACROECONOMIC PRINCIPLES
SPRING 2013
Instructor: Brian B. Young
Email:
[email protected]
Alternate email:
[email protected]
Office hours:
Division Secretary:
Colette J. Nichols
Twitter/Facebook:
Calendar:
Telephone: [602] 325.3274
Web: http://web.gccaz.edu/~bbyoung
By appointment at the CGCC Pecos Campus.
Telephone: [480] 732-7334
Please “follow” @GCCAZ_ECN211 and/or “like”
http://www.facebook.com/Ecn211AtGlendaleCcAz for important course
information and updates
There is a link to the Google Calendar for this class in the file depository.
Course description: A descriptive analysis of the structure and functioning of the national economy. Emphasis is
on economic institutions and factors that determine national income and employment. Consideration is given to
the topics of income, unemployment, inflation, interest rates, and growth with special emphasis given to monetary
and fiscal policies.
Required text: Foundations of Macroeconomics, (6th edition (any late edition is acceptable)), Robin Bade and
Michael Parkin, Addison Wesley, 2013. It is necessary, but not sufficient, to read the text to achieve success in this
course. Look on amazon.com and barnesandnoble.com for lower prices.
Attendance: Attendance is mandatory. Roll will be taken at the beginning of class. Students who miss roll will be
counted as absent. If a student stops attending and needs to drop the class, it is the responsibility of the student to
withdraw prior to the posted deadline. Failure to do so can result in a failing grade in the class.
Course outline:
1) Introduction (Ch. 1)
a) Syllabus
b) Definitions and Graphing
c) Math Review
2) The Global Economy and the Economic Problem (Ch. 2 and Ch. 3)
a) The economy and politics
b) Production possibilities frontier (PPF)
c) Comparative advantage, specialization, and gains from trade
3) Demand and Supply (Ch. 4)
a) Factors resulting in a change in S or D
b) Market Equilibrium
c) Price Rigidities
4) GDP (Ch. 5)
5) CPI (Ch. 6)
a) Three measurements of the price level: CPI, PCE deflator, GDP deflator
b) Real v. nominal variables
6) The Labor Market (Ch. 7)
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12)
13)
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15)
16)
a) The household survey
b) The establishment survey
Potential GDP and Economic Growth (Ch. 8 and Ch. 9) (Ch. 9 may be omitted or moved)
a) Classical v. Keynesian interpretations
b) Economic Growth and Productivity
Investment and Capital Markets (Ch. 10)
a) Interest rates
b) The effects of financing a deficit (crowding out)
The Monetary System (Ch. 11)
a) The Banking System
b) The Federal Reserve System
i) Policy tools
ii) Money creation and fractional reserve banking
Money, Interest, and Inflation (Ch. 12)
a) Velocity and the quantity theory of money
b) The costs of inflation and the costs of deflation
Aggregate Supply – Aggregate Demand and the Business Cycle (Ch. 13)
a) AS – AD fundamentals – “Sticky” wages
b) Applications to the economy (http://www.whitenova.com/thinkEconomics/simul.html)
Aggregate Expenditure (Ch. 14) (Multipliers)
The Phillips Curve (Ch. 15)
Fiscal Policy (Ch. 16)
a) The Federal Budget (deficit)
b) The debate: taxation v. expenditures
Monetary Policy (Ch. 17)
a) How the Fed conducts monetary policy
b) The dual mandate of the Fed (inflation v. unemployment)
c) The European Central Bank
International Trade and Finance (Ch. 18 and Ch. 19)
a) WTO and other multilateral trade coalitions
b) Winners and losers; barriers to trade
c) BOP accounts
d) Purchasing power parity (PPP)
e) Interest rate parity (IRP), naked and covered; currency carry trade
Course content may vary from this description to meet the needs and limitations of this particular class.
Grading: Grading will be based upon points earned on three exams. There will be two exams during the semester
and one final exam. Each exam, including the final, is worth 100 points. The final exam is not comprehensive. All
exams are open book. Grades will be assigned as follows: A = 270 or more points; B = 240 to 269 points; C = 200 to
239 points; D = 150 to 199 points; Failing = < 150 points. An optional extra credit project or optional problem sets
may or may not be offered. Attendance and class participation will be considered in borderline cases.
Disclaimer: All provisions in this syllabus are subject to revision by the instructor. Such revisions, if any, will be
announced in class and on Twitter/Facebook. Exams will be announced at least one week prior to the exam date. It
is the student’s responsibility to make note of all such announcements concerning syllabus revisions and
assignments, and, in case of absence or tardiness, to contact the instructor to determine if any such announcements,
revisions, or assignments were made while the student was absent from the class. CGCC and the instructor will
make reasonable accommodations for persons with documented disabilities. Students should notify the Disabled
Student Resources Office and the instructor of any special needs. Disciplinary standards in this course will be
maintained as per the CGCC Student Handbook. Cell phones must be turned off during the lecture period.