Download Iowa State University Department of Economics ECON 102 (Section

Iowa State University
Department of Economics
ECON 102 (Section 1)
Kevin Meyer
Principles of Macroeconomics
Email: [email protected]
Summer 2015
Phone: 515-294-3542
Monday-Friday, 8:40-9:40 am
Heady 560D
East Hall 0111
Office hours: Mon-Wed, 11:00am-12:00pm
Syllabus
Course Description
This course is an introduction to basic macroeconomic theory. Whereas microeconomics studies the choices of
firms and individuals, macroeconomics looks at the economy as a whole. This means we will cover topics such as
the Gross Domestic Product (GDP), inflation, unemployment, the business cycle, and monetary and fiscal policy,
among others. The focus of the course will be on gaining an intuitive understanding of these concepts through
lectures, problem sets, and real world examples.
Prerequisites
Econ 101 Principles of Microeconomics is a recommended prerequisite for this course.
Required Materials
-Krugman, P. and R. Wells. Macroeconomics
I will be using the 4th edition of this textbook to write my lectures and PowerPoint notes, however the 3rd edition
will probably work fine for you.
The ISU bookstore carries the hardcover version for $224 new and $168 used.
The ISU bookstore also carries the loose-leaf version for $168 new and $128 used.
The Sapling website offers an e-book version for $50.
-Access to the Sapling course website.
Access will cost $40, and there is a short grace period before you must pay, so that everyone can start homework the
first week of class.
Class websites
Blackboard Learn (bb.its.iastate.edu)
Sapling learning: www2.saplinglearning.com
Teaching Assistant
Mr. Jun Xiang will be your primary resource for assistance on course content (e.g. homework, exam
questions, etc.). He is available via the following email, or you can visit him during his office hours.
Email: [email protected]
Office hours: W-F 3:00pm-4:00pm
Key Dates
●
First day of class: Monday, May 18th
●
Exam 1: Friday, May 29th
●
Exam 2: Friday, June 19th
●
Final: Friday, July 10th
The dates of the exams may change depending on whether we are going faster or slower than expected.
Tentative Course Outline
The following is a tentative list of topics and when they will be taught. This is not meant to be an
exhaustive list, and subjects may be taught earlier or later than listed. This is just meant to give you an
idea of how we will progress through the course.
Week
Topics
Chapters
1
12 principles, economic models, supply and demand
1-3
2
Supply and demand, price controls and quotas, Exam 1
3-4
3
The big picture, GDP, CPI
6-7
4
Unemployment, inflation, Long run growth
8-9
5
Savings, investment, the financial system, Exam 2
10
6
Income and expenditure, aggregate demand and supply
11-12
7
Fiscal policy, money & banking, the Fed
13-14
8
Monetary policy, inflation, deflation, Final
15-16
Grading
The overall course grade will be based on the following weighting scheme:
Homework
20%
Exam 1
25%
Exam 2
25%
Final
30%
Homework
Homework problems are assigned weekly, to be completed on the Sapling website. Each problem set
is due by Sunday at midnight. For example, the first problem set is due by Sunday, May 24th at
midnight. No late homework assignments are accepted, even if you are late by one minute. This
means that you will want to complete each assignment early, leaving plenty of time for possible technical
problems.
The lowest homework score is dropped, which provides you some leeway in case of a bad week, or if
you somehow forgot to do it.
While you may work with others on these problems, it is very important that you attempt to answer the
questions yourself on the first try. This is the only way you will know what you really understand, and
what you are struggling with. This will help you focus when you study for the midterm and final.
Extra Credit Paper
Students may write a short (1-2 page, 12pt font, double-spaced) extra credit paper describing a current
event related to macroeconomics. Well written papers will provide a clear explanation of the event using
concepts and terminology that have been taught during the class. These papers are due on or before
July 10th, which is the last day of class.
Raw grades will first be calculated using the above weights. Extra credit can bump these grades up a
maximum of one letter grade, although this will only be done for exceptionally written papers. It is more
likely that they will bump a grade up half a letter grade- from a B- to a B, for example. Extra credit is not
automatically given if you turn in “something”- the paper must demonstrate effort and understanding on
the part of the student.
Exams
The two midterms and the final will consist of multiple choice, fill in the blank, and short answer questions
based on material covered in class, the text, and homework. The final will be cumulative, but with an
emphasis on material covered since the second midterm. Exam scores and keys will be posted on
blackboard after grading.
Bring a photo ID to show when you turn your exam in. No calculators or electronic devices of any kind
can be used while taking the exam. On your answer sheet, provide the last four digits of your nine-digit
student ID number. Special needs for a disability should be worked out in advance.
For missed exams, a makeup exam will be made available without penalty for a legitimate and
documented excuse. A legitimate excuse includes, for example, illness, death in the family, or a time
conflict. These must be communicated to myself or Jun prior to the exam.
Class Conduct
Be respectful to others, including myself and other students. Specifically:
●
Unless it’s unavoidable, please don’t be late for class or leave early.
●
No distracting use of electronic devices. Leave your phones on mute, and don’t play games or
browse the internet on laptops/phones/etc. This can be distracting to your neighbors who are
trying to focus on the material.
●
Wait until class is over to talk or pack up your stuff.
Strategy for Success
The length of the summer session means we will be going through a lot of information quickly. It would
be a good idea to get yourself into a daily routine and stick to it. A good routine would include the
following:
1. The day before class, preview the material that will be covered.
2. Go to class every day.
3. Keep yourself engaged during class.
4. After class, review your notes and work on the homework.
5. At the end of each week, spend some time reviewing all of the concepts we have covered up to
that point.
Learning Objectives
The ISU economics department has develop a set of objectives that students will hopefully master by the end of any
principles of macroeconomics class:
Overall Objective
The overall objective is to introduce the student to macroeconomics and the economist’s way of thinking.
Specifically, by the end of the course, the student should be familiar with the basic terminology of macroeconomics,
the central problems faced by economies at the macroeconomic level, and should understand how different
government policies and household behavior affect macroeconomic outcomes.
Broad Objectives
●
Understand key macroeconomic concepts (including GDP, nominal and real values, specific types of
unemployment, measures of inflation, the Federal Reserve, monetary and fiscal policy among others.)
●
Critically think about and relate key macroeconomic concepts to the real world. Understand the use of
economic models as a tool in explaining the macro economy.
●
Understand how macroeconomic policies are used to achieve specific macroeconomic goals.
●
Recognize that there are shortcomings associated with traditional economic measures and models (no
perfect measure or model).
Specific Objectives
●
Know the difference between microeconomics and macroeconomics and understand the key issues in
macroeconomics.
●
Define and measure different macroeconomic variables including Nominal and Real GDP, measures of
inflation—including the CPI and the IPD, and types of unemployment, and analyze the relationships among
them.
●
Know and understand the nature and determinants of economic growth and the main theories economists
use to explain growth.
●
Identify the different types of money, describe their functions, and explain the money creation process, the
money multiplier, and the process of interest rate determination.
●
Discuss the role of the central bank and its use of monetary policy.
●
Understand the foreign exchange market and how the exchange rate is determined.
●
Explain the business cycle using the AD-AS model.
●
Understand the Keynesian model and the concept of the multiplier.
●
Explain the role of the government and how it uses fiscal and monetary policy to influence macroeconomic
variables.
Students with Disabilities
Iowa State University is committed to assuring that all educational activities are free from discrimination and
harassment based on disability status. All students requesting accommodations are required to meet with staff in
Student Disability Resources (SDR) to establish eligibility. A Student Academic Accommodation Request (SAAR)
form will be provided to eligible students. The provision of reasonable accommodations in this course will be
arranged after timely delivery of the SAAR form to the instructor. Students are encouraged to deliver completed
SAAR forms as early in the semester as possible. SDR, a unit in the Dean of Students Office, is located in room
1076, Student Services Building or online at www.dso.iastate.edu/dr/. Contact SDR by e-mail at
[email protected] or by phone at 515-294-7220 for additional information.
Academic Dishonesty
This class will follow ISU’s policies on academic dishonesty, found at the following link:
dso.iastate.edu/ja/academic/misconduct.html. Violations of the policies will not be treated lightly, and disciplinary
actions will be taken should such violations occur. Note that copying work from other students is a violation of these
policies.