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Economics 211
Principles of Macroeconomics
Fall 2011
Instructor: Brian Young
Email: [email protected]
Office hours: 5:30 – 7:00 W; location TBA
Course description: A descriptive analysis of the structure and functioning of the American
economy. Emphasis on basic economic institutions and factors that determine national income
and employment levels. Consideration given to the macroeconomic topics of national income,
unemployment, inflation and monetary and fiscal policies.
Required text: Macroeconomics, 3rd Custom Edition for GCC, Robin Bade and Michael Parkin,
Addison Wesley, 2009.
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
2) The Global Economy and the Economic Problem (Ch. 2 and Ch. 3)
a) PPF
b) Comparative advantage, specialization, and gains from trade
3) Demand and Supply (Ch. 4)
a) Market Equilibrium
b) Price Rigidities
4) GDP (Ch. 5)
5) CPI (Ch. 6)
6) The Labor Market (Ch. 7)
7) Potential GDP and Economic Growth (Ch. 8 and Ch. 9)
a) Classical v. Keynesian interpretations
b) Economic Growth and Productivity
8) Investment and Capital Markets (Ch. 10)
a) Interest rates
b) The effects of financing a deficit
9) The Monetary System (Ch. 11)
a) The Banking System
b) The Federal Reserve System
i) Policy tools
ii) Money creation and fractional reserve banking
10) Money, Interest, and Inflation (Ch. 12)
a) Velocity and the quantity theory of money
b) The costs of inflation
11) Aggregate Supply – Aggregate Demand and the Business Cycle (Ch. 13)
12) Aggregate Expenditure (Ch. 14)
13) The Phillips Curve (Ch. 15)
14) Fiscal Policy (Ch. 16)
a) The Federal Budget (deficit)
b) The debate: taxation v. expenditures
15) Monetary Policy (Ch. 17)
a) How the Fed conducts monetary policy
b) The dual mandate of the Fed (inflation v. unemployment)
16) International Trade and Finance (Ch. 18 and Ch. 19)
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. In addition, there will be occasional problem sets and
exercises which, in total, are worth 30 points. Grades will be assigned as follows: A = 270 or
more points; B = 225 to 269 points; C = 180 to 224 points; D = 150 to 179 points; F = fewer than
150 points. Attendance and class participation may 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. 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.
GCC 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 GCC Student Handbook.
Cell phones must be tuned off during the lecture period.