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UNIVERSITY OF SOUTHERN INDIANA
DEPARTMENT OF ECONOMICS AND FINANCE
ECON 209 - PRINCIPLES OF MACROECONOMICS
DR. CASHEL-CORDO SPRING 2009
Economics is the painful elaboration of the obvious.
OFFICE: 3007 OC
PHONE: 465-7033
E-MAIL: [email protected]
WEBPAGE http://business.usi.edu/cashel
OFFICE HOURS: TR 9:30-10:15,
and TR 2:00-2:45
OR BY APPOINTMENT
TEXT: The Macroeconomy Today, 11th Edition, Schiller, McGraw-Hill Irwin, 2008
Recommended Companion Websites –
McGraw-Hill Irwin Student Companion Website
The chapter multiple choice questions are a good tool to gauge your understanding.
Careers for Economics Majors – useful information for interested students
Mother lode of economic related topics – wide variety of economic related topics; follow the “neat stuff”
link for economic jokes
COURSE PREREQUISITE: College Algebra, MATH 111 or its equivalent
COURSE CONTENT: Economics is a social science that explores how a society, through the
decision making of individual agents, allocates its scarce resources in the production, exchange and
consumption of different goods and services. Macroeconomics studies the aggregate behavior of
these agents in their roles as households, business firms, and government policy makers. The main
focus of this course will be the study of government fiscal and monetary policy as it applies to avoiding
inflation and unemployment in the aggregate economy.
COURSE OBJECTIVES: This course serves as or fulfills requirements for several different
constituencies. As such, it has an extensive list of objectives. Being a foundation course in the
economics department, this course introduces students to the principles of macroeconomics. At the
end of this course students should be able to:
Define relevant economic vocabulary and concepts
Apply these concepts in explaining the behavior the different economic agents within the macro
economy,
Predict outcomes of fiscal and monetary policy as they relate to inflation and unemployment
Interpret and use graphs to explain macroeconomic concepts,
Use simple algebra to conduct economic analysis.
Analytical Problem Solving – Economic reasoning is analytical thinking. By the end of this course
the student should be able to identify and apply relevant economic concepts to solving a variety of
economic problems and should be able to interpret the results of their solutions.
UCC - C2: This course serves in the fulfillment of the University Core Curriculum in the C2Category, An Understanding of Individual Development and Social Behavior . The objectives of this
category are, as described in the UCC guidebook:
Students should know how individuals develop, interact, and organize
themselves in political, religious, social, and economic spheres. They
should understand the significance and vitality of social organizations
ranging from groups to institutions, and the role of the individual within
social environments.
GRADING: Student performance is calculated using the following instruments. Each instrument is
given a percentage weight towards the final grade in the course. Grades are assigned on the basis of
a grade distribution where the average grade is in the C to C+ range. In essence grades are curved.
QUIZZES: Quizzes will be given every Thursday with the exception of test days. They are designed
to keep students current with the readings. The quizzes will consist of five short answer questions
dealing with reading assignments and lecture materials. There will be no make up for quizzes.
However your lowest quiz grade will be dropped. If you miss a quiz, it will be considered the one to be
dropped.
HOMEWORK: At the discretion of the instructor, students will be assigned homework. Homework
will take the form of either analytical problem solving or open-ended questions. These assignments
are to be completed individually by each student; however, students are encouraged to work together.
Homework will be announce in class and will be available on the course’s webpage located in the
reading list (see below). As with quizzes, the lowest homework grade will be dropped, thus no late
assignments will be accepted.
EXAMS: Three midterm exams are scheduled during the semester. They will be given as shown in
the reading list. Exams consist of two sections. The first section will be multiple choice questions
designed to test the breadth of the student's knowledge and assess meeting course objectives. The
second section will be a combination of essay and/or problem solving questions designed to test the
depth of the student's understanding of important concepts or issues. Make-up exams are strongly
discouraged, but possible under extraordinary circumstances. It is the student’s responsibility to
inform me BEFORE the exam and be able to provide written documentation should there be a
question of the circumstances.
GRADING:
Quizzes
Homework
Three In-class Exams
Cumulative Final Exam
Total
10%
10%
20% each = 60%
20%
100%
RECOMMENDED STUDY METHODS: You will have the opportunity at the beginning of each lecture
to ask questions. You are strongly encouraged to review material from the previous lecture.
Experience shows that the best way to review is to copy your class notes into a second notebook as
soon as possible after class. You should add material that you remember from class but were unable
to write down at the time. It is also useful to meticulously draw all the graphs with a ruler making sure
you understand the underlying concepts. This will reinforce what you have learned, and more
importantly, make clear what you do not understand. You will then be able to ask questions in the
next class period or during office hours. The old adage is true, the best way to learn is to teach .
Teach yourself and you will learn.
ATTENDANCE POLICY: While attendance is not mandatory, it is highly recommended since
students will be evaluated on both lecture and reading materials. Class participation is strongly
encouraged.
ACADEMIC HONESTY: Academic dishonesty, in particular plagiarism (submitting another person's
work, in whole or in part, as your own), or cheating on quizzes or exams will not be tolerated.
Students will be subject to disciplinary action as outlined in the Student Rights and Responsibilities
section of the 2007-2009 USI Bulletin. The student will receive an "F" grade in the course and may be
dismissed from the University if found guilty.
DISABILITY SERVICES: USI students with disabilities can receive services through the University
Counseling Center. More information is available from the Counseling Center, OC 1051 or phone
464-1867.
READINGS: The student is required to read all relevant material PRIOR to its being covered in
class. By using the following readings list the student should know what is currently being covered in
class. The student will have prior notification should lectures deviate from the list. We will attempt to
complete all the topics on this reading list; however, the instructor retains the right to make changes as
necessary.
PRINCIPLES OF MACROECONOMICS
READING LIST – SPRING 2009
READING
QUIZ/EXAM
WEEK 1
Economics & US Economy – Introduction
Chapters 1 & 2
Quiz 1
WEEK 2
Market vs. Govt. Allocation
Chapters 3 & 4
Quiz 2
WEEK 3
National Income Accounting
Chapter 5
Quiz 3
Chapter 6
Exam 1
WEEK 4
Unemployment
Exam 1 (2/5, Chap. 1-5)
WEEK 5
Inflation & Business Cycle
Chapters 7 & 8
Quiz 4
WEEK 6
Aggregate Demand
Chapter 9
Quiz 5
WEEK 7
Self-Adjustment or Instability
Chapter 10
Quiz 6
Chapter 10
Exam 2
WEEK 8
Self-Adjustment or Instability
Exam 2 (3/4, Chap. 6-10)
WEEK 9
Fiscal Policy & Deficits and Debt
Chapters 11 & 12
Quiz 7
WEEK 10
Money and Banks
Chapter 13
Quiz 8
WEEK 11
Federal Reserve
Chapter 14
Quiz 9
WEEK 12
Exam 3 (4/9, Chap. 11-14)
Chapter 14
Exam 3
WEEK 13
Monetary Policy
Chapter 15
Quiz 10
WEEK 14
Aggregate Supply Short Run
Chapter 16
Quiz 11
WEEK 15
Economic Growth
Chapter 17
COMPREHENSIVE FINAL EXAM
Econ 209.003 Tuesday May 5 th 10:30-12:30
Econ 209.004 Thursday May 7 th 12:00-2:00