Download Fall 2007 - Valdosta State University

PRINCIPLES OF MACROECONOMICS
Fall 2007
ECON 2105E T, Th 8:00am – 9:15am
ECON 2105F T, Th 2:00pm – 3:15pm
Professor:
Dr. Scott Tori
Office:
317 Pound Hall
Contact Info: 245-2249 (office)
249-9711 (home)
[email protected]
Webpage:
http://www.valdosta.edu/~sltori/
Office Hours: T,Th 9:30-11:00, 12:30-2:00 M, W 11:00 – 12:00 or by appointment
Responsibilities:
You and I both have an obligation to create an environment that is conducive for mastering the learning objectives.
As the instructor, I have the following responsibilities:
 Come prepared to class.
 Plan classroom activities to achieve learning objectives.
 Listen, guide and help students to learn.
 Write clearly worded examination questions and grade examinations fairly.
 Show students respect.
As a student, you have the following responsibilities:
 Come prepared to class.
 Complete all work and reading assignments with proper attention and thought.
 Listen, ask questions, be involved in class and learn.
 Understand that I do not intentionally write “tricky” examination questions. If you do not understand an
examination question, ask me to clarify the question during the examination period.
 Show me and the other students respect.
Attendance:
You are responsible for all material covered in the lectures. Lectures cover material from the text, Wall Street
Journal, and other sources. The material presented in class is cumulative in nature. For these reasons, punctual
attendance is critical. You are expected to be on time when attending class. Late arrivals, after attendance has
been completed, will count as an absence. In accordance with the VSU Absence Regulations, if you miss 20% of
the scheduled classes (6 classes), you will earn an “F” for the course.
Course Prerequisites: none
Access Office for Students with Disabilities:
Students requesting classroom accommodations or modifications because of a documented disability must contact
the Access Office for Students with Disabilities located in room 1115 Nevins Hall. The phone numbers are 2452498 (voice) and 219-1348 (tty).
Text: Hubbard and O’Brien, Economics, 2006. ISBN: 0-13-185908-0
Text webpage: www.prenhall.com/hubbard
 includes end-of-chapter problem solutions (even numbers), powerpoint slides, interactive study guide, and
more
Suggested Reading: Wall Street Journal
Professor provided sources:
Chapter notes – outline
Detailed Unit learning objectives
Sample exams
Internet Sources:
Federal Reserve Board
U.S. Treasury Department
U.S. Bureau of Labor Statistics
Bureau of Economic Analysis
http://www.federalreserve.gov
http://www.ustreas.gov
http://stats.bls.gov
http://www.bea.doc.gov
General Course Learning Objectives:
Macroeconomic Basics
Students will:
1. define macroeconomic terms.
2. calculate macroeconomic term values.
3. explain the relationships between the macroeconomic terms.
4. demonstrate a basic knowledge of international trade and finance.
Macroeconomic Equilibrium and Policies
Students will:
1. illustrate the relationships between the macroeconomic terms.
2. illustrate the impact of a change in the economy on the macroeconomic terms.
3. define fiscal policy and monetary policy.
4. calculate the impacts of policy changes on the macroeconomy.
Macroeconomic Analysis
Students will:
1. identify macroeconomic problems and relate them to the business cycle.
2. list potential policy solutions to correct macroeconomic problems.
3. explain and illustrate how potential policy solutions impact the macroeconomy.
4. identify the policy solution(s) to correct macroeconomic problems for each macroeconomic theory.
5. define, compare, and contrast macroeconomic viewpoints of fiscal policy and monetary policy.
Homework Assignments and Examinations:
The course is divided into 4 units. Each unit consists of one homework(no homework with the final) assignment
and one examination. The homework assignments will be provided. The 3 mid-term examinations focus primarily
on the unit specific learning objectives. The final examination is comprehensive.
The examinations consist of multiple-choice questions and a problem-solving question. The problem-solving
question tests the analytical skills developed up to the point of the examination. The analytical skills tested by unit
are:
Unit 1: Given economic data, students will
 calculate real GDP, the growth rate, and the inflation rate.
 identify the business cycle phase.
 identify the problem facing the economy. Explain your conclusion.
Unit 2: Given economic data, student will
 calculate real GDP, the growth rate, and the inflation rate.
 identify the business cycle phase.
 identify the problem facing the economy. Explain your conclusion
 identify the likely source of the problem (↑AD, ↓AD, ↑AS, ↓AS). Explain your conclusion.
 list the potential fiscal and monetary policy solutions available to solve the problem.
Unit 3: Given economic data, student will
 calculate real GDP, the growth rate, and the inflation rate.
 Identify the business cycle phase.
 identify the problem facing the economy. Explain your conclusion
 identify the likely source of the problem (↑AD, ↓AD, ↑AS, ↓AS). Explain your conclusion.
 list the potential fiscal and monetary policy solutions available to solve the problem.
 assuming one of the three theories, identify the policy solution(s) most likely supported by each
theory.
Grading:
Your performance on the 4 examinations (100 points each for exam 1 and 3, 70 points for exam 2, 120 points for
comprehensive final examination), and the homework assignments (30 points, 10 each) determines your final
grade. The grading scale is:
A
B
C
D
F
420 - 378 points
377 - 336 points
335 - 294 points
293 - 252 points
below 252 points
To maintain the integrity of the grading system, I WILL NOT modify the grading scale for individual students. DO
NOT ASK!!
Important Policies and Procedures:
1. Regular class attendance is required, and will be checked daily. In accordance with the VSU Absence
Regulations, if you miss more than 20% of the scheduled classes (6 classes), you may earn an “F” for the
course.
2. You must turn off you cell phone BEFORE class begins. You may NOT use your cell phone as a calculator.
If your cell phone is in view or used during class, I will take it from you and will return it to you after class.
You will be assessed a 5 point penalty reduction for using your cell phone/IM in class.
3. If a student misses one mid-term examination and has a legitimate excused absence, the final exam will be
weighted to adjust for the missed mid-term examination (i.e. the final would be worth 220 points instead of 120
points). Legitimate excused absences include death in the immediate family, University sponsored trips,
legitimate business obligations or critical illness. Verification is required and permission to miss an
examination must be secured PRIOR TO the scheduled examination time. If this condition is not met, a zero
will be given for the missed exam. Unit specific make-up exams will not be given. If a student misses more
than one examination, the final exam will be weighted to adjust for the first missed exam, and zeros will be
recorded for all other exams. There are no make-up exams for the final exam.
4. Homework assignments are to be turned in the class prior to the exam they pertain to.
5. Extra credit assignments, if offered, are at my discretion and are available to all students in the class. The
assignments must be turned in by the specified due date for credit. Extra credit assignments turned in late will
be given a zero. Extra credit assignments will be offered to all students in the class or none at all (no
preferential or special treatment).
6. If you wish to withdraw from this course, it is your responsibility to complete and return to the registrar all
paperwork. A grade of “W” is reported for all withdrawals prior to the last official withdrawal date (mid-term).
A grade of “WF” is reported for all withdrawals after the official withdrawal date (unless specific University
conditions are met). A grade of “WF” counts the same as an “F” when calculating GPA. A grade of F is
reported for all students who do not turn in the withdrawal paperwork and fail to achieve more than 227 points.
7. ATTENTION BUSINESS MAJORS! You have three attempts to earn a “C” or better in this course. An
attempt is defined as earning a grade of “D” or “F” for the course, or withdrawing from the course after the end
of the add/drop period at the beginning of the semester.
8. A grade of “I” is reported for students with legitimate excused and documented reasons for not completing
all work before the end of the semester. The missed coursework must be completed within one year or a grade
of “F” will be reported.
9. Cheating will not be tolerated! Evidence of cheating will result in full disciplinary action.
10. No food or drinks, except water, are allowed in the classroom. Food and drinks may be consumed in the
Student Lounge located in the basement, or outside the building.
Important Dates:
September 3
September 6
September 27
October 4
October 15-16
November 1
November 21-23
December 5
Labor Day
Unit 1 examination
Unit 2 examination
Mid-term – last day to drop the course without receiving a WF
Fall Break – no classes
Unit 3 examination
Thanksgiving Break – no classes
Comprehensive Final Section E 10:15am-12:15pm
Comprehensive Final Section F 2:45pm-4:45pm
Expected Course Schedule:*
Class 1
Review syllabus
Class 1/2
Chapter 1
Class 3/4
Chapter 19
Class 5
Chapter 21
Class 6/7
Chapter 20
Sept 6
Unit 1 exam
Class 9/10
Chapter 24
Class 11/12/13
Chapter 24
Sept 27
Unit 2 exam
Class 15/16
Chapter 25
Class 17/18
Chapter 26
Class 19/20
Chapter 27
Class 21/22
Chapter 24 appendix and other viewpoints
Nov 1
Unit 3 exam
Class 24/25
Chapter 29
Class 26/27
Chapter 30
Class 28/29
Chapter 22
Class 30
Course review
Dec 5
Final Econ 2105E Wednesday 10:15-12:15
Econ 2105F Wednesday 2:45-4:45
*The course schedule may be modified if unexpected events occur. Every effort will be made to adhere to the
examination dates.
Macroeconomic Basics
Chapter and topics
Textbook questions
Chapter 1
What is economics?
Positive and normative economics
Macroeconomics and microeconomics
Opportunity cost
Chapter 19
Gross domestic product (GDP)
Gross national product (GNP)
Expenditure approach
Nominal GDP vs. Real GDP
GDP deflator
Chapter 21
Measuring economic growth
Business Cycle
Chapter 20
Unemployment rate
Types of unemployment
Inflation
Problems and Applications
2, 6, 14, 16, 18
Review Questions
4, 6, 10
Problems and Applications
4, 6, 7, 8, 14, 16, 18, 19
Review Questions 2, 9, 10
Problems and Applications 2, 4, 6, 8, 20
Review Questions
5, 6, 7, 8,10
Problems and Applications
Price index
Real vs. nominal interest rates
Chapter 24
Aggregate Demand
Aggregate Supply
Equilibrium
6, 8, 14, 15, 16, 20, 22
Review Questions
1, 3, 4, 5, 6, 7, 9, 10
Problems and Applications
1, 2, 3, 5, 9, 10, 14, 16
Macroeconomic Policy and Analysis
Chapter and topics
End-of-chapter problems and applications
Chapter 25
What is money?
Measuring money
How banks create money
Federal Reserve System
Chapter 26
Monetary policy targets and goals
Monetary policy and economic activity
Central Bank independence
Review Questions
2, 3, 4, 6, 7, 8, 9, 10,11
Chapter 27
Fiscal policy
Spending and tax multipliers
Balanced budget multiplier
Automatic stabilizers
Debt, deficit, surplus
Review Questions
1, 2, 4, 5, 6, 7, 8, 10, 11, 12, 13
Problems and Applications
4, 8, 10, 12, 13, 14, 15
Review Questions
1, 2, 3, 4, 5, 6, 7, 8, 9
Problems and Applications
1, 2, 4, 8, 9, 12, 14, 15, 16, 18, 20
Problems and Applications
1, 3, 6, 7, 9, 12, 16, 20
Open Economy Macroeconomics
Chapter and topics
End-of-chapter problems and applications
Chapter 29
Balance of Payments
Current account
Capital and financial account
Foreign exchange markets and rates
Monetary and Fiscal policies in an open
economy
Chapter 30
Exchange rate systems
Floating dollar
Euro
The Gold Standard
The Bretton Woods System
Chapter 22
Economic growth around the world
Impact of growth policies around the world
Review Questions
1, 2, 3, 4, 5, 7, 12
Problems and Applications
1, 2, 3, 4, 6, 8, 9, 14, 20
Review Questions
1, 3, 5
Problems and Applications
1, 2, 4, 8, 9, 13, 16, 20
Review Questions
1, 2, 4, 8, 9, 10
Problems and Applications
1, 6, 7, 10, 12, 16, 18, 20