Download EC201 Principles of Macroeconomics

ECON-100 Principles of Macroeconomics
Dr. Martha Starr
Department of Economics
American University
Spring 2004
Telephone:
Office:
Office hours:
Email:
Class webpage:
(202) 885-3747; (703) 283-0054 cell
Roper Hall 201
T and F, 2-3:30 pm, and by appointment
[email protected]
AU blackboard
Course description
This class provides an introduction to macroeconomic analysis. Whereas the field of
microeconomics studies individual markets for goods, services, and factors of production, the
field of macroeconomics studies the behavior of the economy as a whole. Central problems in
macroeconomic analysis include: the measurement of output and prices, growth of output and
productivity, causes of unemployment, business cycles, effects of monetary policy, effects of
government spending and taxation, and linkages between national economies via international
trade and finance.
Required readings
The text for the class is N. Gregory Mankiw, Principles of Macroeconomics, 3rd edition.
Additional readings are linked from the “course outline” page on the class Blackboard site, or
will be distributed in class. As we will be discussing current macroeconomic news, it will also
be beneficial for you to read high-quality economic/financial press, such as the Wall Street
Journal, New York Times business section, or The Economist magazine.
Grades, tests and dates
2
Item
% of final
grade
Dates
Assignments (4)
20.0
Jan. 30, Feb. 24, Apr. 13, Apr. 23
Short presentation
5.0
Based on one of the assignments
Problem sets (~ 5)
10.0
Distributed throughout the semester
Midterm #1
17.5
Friday, Feb. 13
Midterm #2
17.5
Tuesday, March 23
Final exam
25.0
Class participation
5.0
ECON 100-005 -- TF 11:20
Tues., May 4, 11:20 am – 1:50 pm
ECON 100-006 -- TF 12:45
Fri., Apr. 30, 11:20 am – 1:50 pm
Throughout the semester
NOTE: No class April 2.
ECON-100 Course outline
TOPIC
1. Introduction to economics
Demand and supply
APPROX.
DATES
TEXTBOOK OTHER READINGS [IN BLACKBOARD]
Jan. 16
Chaps.
1-2
Jan. 20-27 Chap. 4
Economist article on coffee market
2. Measuring Output and Prices
3.
4.
Measuring the nation's income
Jan. 27-30 Chap. 10
Measuring the cost of living
Feb. 3
Chap. 11
Production and growth
Feb. 6-10
Chap. 12
Saving, investment and the
financial system
Chap.
13, and
Feb. 17-20 pp. 295299,
524-526
Articles on the stock market
Unemployment, "natural rate"
Feb. 24-27 Chap. 15
BLS article on U.S. unemployment in
international perspective
Output and Employment in the
Long-Run
Money and Prices in the LongRun
The monetary system
Mar. 2
Chap. 16
Inflation
Mar. 5
Chap. 17 Briefly
Mar. 5-16
Chap. 20
5. Business Cycles
Aggregate supply and demand
3
Monetary and fiscal policy
6.
Mar. 19
Chap. 21 Excerpt from Maestro
International Trade and
Finance
Overview
Mar. 26
“International economic institutions”
International trade
Mar. 30Apr. 9
Chaps. 3
and 9
International finance, openeconomy macro
Apr. 9-20
Chap. 18 Stiglitz and Walsh
Competing perspectives on
globalization
Apr. 23
Economist article on free trade
Economist article on globalization;
article by Jeffrey Sachs
ASSIGNMENTS
The assignments are projects intended to build your skills in collecting, interpreting and
analyzing economic data and your ability to relate your findings in a clear, compelling way.
Each assignment is worth 5 points towards your final grade, for a total of 20 points. For each
assignment, you will write a 1-2 page analysis of the given topic. The analysis should be
thoughtful, accurate, and complete, and should demonstrate creative application of analytical
and empirical concepts developed in class.
For one of the assignments, you will be required to make a brief [2 minute] presentation of
your findings to the class. Students will be randomly assigned which topic to present. The
presentation will be worth 5 points towards your final grade and will be evaluated by your
peers.
Detailed instructions will be handed out soon and posted in the ‘Assignments’ section of the
Blackboard site.
ASSIGNMENT TOPICS AND SCHEDULE
No.
1
2
3
4
Topic
Fluctuations in the world price of a
primary commodity
Analysis of the stock price performance
of competing companies
Economic and legal dimensions of a
trade dispute
Exchange-rate fluctuations between
two countries
Expected date to
start
Due date +
presentation
Jan. 23
Jan. 30
Feb. 17
Feb. 24
March 26
Apr. 13
Apr. 16
Apr. 23
PROBLEM SETS
The problem sets are quantitative exercises intended to provide practice for quantitative-type
questions that could appear on exams. They will be handed out over the course of the
semester, and will usually be due one week later; they will also be posted in the ‘Assignments’
4
section of the class Blackboard site. There will probably be 5, worth a total of 10 points. You
may work together on problem sets, but you must write up your answers independently.
5
Policies
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Regular attendance is expected.
Make-up exams will not be given unless your absence was caused by an unavoidable
medical or family situation that I can verify (e.g. note from school clinic).
You may work together on problem sets and assignments, but you must write-up your
answers independently.
Students are expected to adhere to American University’s Academic Integrity Code at all
times.
ECON-100 and the General Education Program
ECON-100 Macroeconomics is one of eight foundation courses in Curricular Area 4 (Social
Institutions and Behavior) in the University’s General Education Program. It is the first of a
two-course sequence. You must take one of the following courses from to complete the
General Education requirements for Curricular Area 4, Cluster 1 (Institutions):
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AMST-240G Poverty and Culture
COMM-275G Dissident Media: Voices from the Underground
ECON-200G Microeconomics
EDU-200G Schools and Society
FIN-200G Personal Finance and Financial Institutions
GOVT-210G Political Power and American Public Policy
GOVT-215G Civil Rights and Liberties
PHIL-240G Ethics in the Professions
SOCY-210G Inequality: Class, Race, Ethnicity
WGST-225G Gender, Politics, and Power
As a General Education class, the structure and requirements of this class aim to promote the
development of skills and aptitudes that are broadly important:
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Ability to think critically, especially to make judgments based on reasoning and
evidence
Ability to collect, interpret and synthesize information collected from diverse sources
(“information literacy”)
Ability to organize and analyze quantitative information (“numeracy”)
Ability to apply principles of economic analysis creatively
Ability to appreciate problems from multiple perspectives, including those of race,
gender, class, and cultural heritage
Specific consideration of the increasingly global dimensions of economic problems and
policies
Appreciation of ethical dimensions of economic problems and policies
Ability to communicate ideas effectively, in writing and orally