Download ECO 2251 - Sorrell College of Business

MANUEL H. JOHNSON CENTER FOR POLITICAL ECONOMY
SORRELL COLLEGE OF BUSINESS
TROY UNIVERSITY
ECO 2251
Principles of Macroeconomics
Tuesday & Thursday 10:00 – 11:15 AM, Fall 2012
Bibb Graves Hall, Room 211, Troy Campus
Professor: Dr. Daniel J. Smith Office: 137F Bibb Graves Hall
Email: [email protected] Phone: 334-808-6485 Webpage: www.DanielJosephSmith.com
“The curious task of economics is to demonstrate to men how little they really know about what they
imagine they can design.”
-F.A. Hayek
“Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but
peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural
course of things.”
-Adam Smith
"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most
people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous
opinion on economic subjects while remaining in this state of ignorance."
-Murray N. Rothbard
Prerequisites
None.
Description
Macroeconomic theory of the national economy with emphasis on income, employment,
banking, and public policy.
Office Hours
I will be in my office, available for students for the following times, but will also provide office hours at other times
by request. I will, in general, be in my office during normal business hours and you are more than welcome to stop
by at other times to check to see if I am in.
Tuesday 1:00 PM – 3:00 PM
Wednesday 1:00 PM – 3:00 PM
Thursday 1:00 PM – 3:00 PM
Student learning outcomes - On completion of the course, the student should be able to:
1. Explain resource allocation—both market and nonmarket methods of allocation.
2. Outline the relationships among spending, output, employment, and inflation and their
relation to the goals of macro and/or economic growth.
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3. Explain changes in the equilibrium price level, output level, and level of employment using
the aggregate demand (AD) and aggregate supply (AS) framework.
4. Assess the impact of fiscal policy on an economy.
5. Explain money creation, the Federal Reserve System, and the role of monetary policy in an
economy.
Purpose
To provide familiarity with the fundamental concepts and theories of economics as they apply to
everyday life. These include the concepts of price determination, national income accounting,
governmental fiscal and monetary policy, and economic growth. Prerequisite for admission into
all upper-level business courses. A choice of ECO 2251 or ECO 2252 is required for the ASB
Business Administration minor.
Other Requirements
All students who take this course must take a timed, proctored, comprehensive, closedbook/closed notes formative exam which will be taken in Blackboard during the final
examination period. The exam must be worth between 10% and 25% of the points of the course,
except for eTROY courses where it must be 25%. The exam results may not be scaled. This
exam will be administered online in Blackboard. All students, regardless of course format
(online, lecture, or hybrid) will be registered in a separate course in Blackboard where this exam
is accessed. Instructors will not have access to this course, nor will they be allowed to preview
the questions. The exam will cover all of the learning objectives listed in this master syllabus.
See the last two pages for a detailed list of subtopics included. These topics must be covered by
all instructors at the minimum in their courses.
All instructors should read the following information to ensure they understand the requirements,
grade reporting system, and the administration periods in which these exams are given:
http://business.troy.edu/Portal/formative-assessments.aspx
For more information on the specific requirements for Eco 2251, view this page:
http://business.troy.edu/Portal/eco-2251-and-eco-2252.aspx
Grading
Quizzes
Midterm Exam
Formative Exam
Final Exam
Participation
40%
20%
10%
20%
10%
EC Opportunities
Dr. Peter J. Boettke
Other Lecturer
2.5%
2.5%
Grading Scale (Percentage)
A
90-100
B
80-89.9
C
70-79.9
3
D
F
60-69.9
0-59.9
Participation
Due to the nature of the material, lectures will largely be discussion based. I expect students to come to class having
carefully read the assigned material in order to engage in discussions about the material.
Quizzes
Around 14 quizzes worth 10 points each will be administered weekly, on either Tuesday or Thursday. The quizzes
will be limited to material covered in the current lecture, material covered in the previous class’s lecture and the
assigned readings for the day. These quizzes are designed to encourage students to thoroughly read the assigned
material and to take and review lecture notes.
Attendance
I do not take attendance; however, in order to participate and take the quizzes, you must be present and on time.
There are no makeup quizzes. If you miss a class you are expected to read the material on your own and copy notes
from the missed class from a classmate.
Extra Credit Opportunities
There will be a few guest speaker opportunities for extra credit points throughout the semester. Attend the event,
sign-in, and then submit a two page paper (double-spaced, Times New Roman Font 12, 1 inch margins, separate
cover sheet) responding to the lecture within one week.
Friday, September 14th: Dr. Claudia Williamson
Friday, November 9th: Dr. Peter J. Boettke
Midterm Exam
A midterm exam will be administered on October 4.
Final Exam
A final exam will be administered on December 4.
Formative Exam
A final formative exam will be administered on Monday, December 10 from 11:00 AM – 1:00 PM.
Formative Assessment Guidelines for ECO 2251/2
 The formative assessment is the final exam for Eco 2251/2. The exam is comprehensive and covers all
student learning objectives from Eco 2251/2.
 Notes, books, etc. are not allowed on the formative assessment. The exam is closed book, closed notes.
 The formative assessment must be 25% of the total points for the course.
 The formative assessment will be 2 hours in length and must be completed in one sitting. Students who
exceed the time limit will have points deducted from their exam at the rate of 5% per minute.
 The formative assessment will consist of 50 (ECO 2252) or 60 (ECO 2251) multiple choice questions,
covering a mixture of concepts questions and problems.
 Students may use a basic handheld calculator without text storage capability. Telephones and/or translators
may not be used at any time during this exam.
 Proctors may provide students with one blank sheet of paper (8-1/2 x 11 or A4) for doing calculations or
sketching graphs during the exam. All scratch paper used must be collected by the proctor at the end of the
test and may not leave the testing center.
For more information on the specific requirements for Eco 2251, view this page:
http://business.troy.edu/Portal/eco-2251-and-eco-2252.aspx
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INCOMPLETE GRADE POLICY
Missing any part of the Course Schedule may prevent completion of the course. If circumstances will prevent the
student from completing the course by the end of the term, the student should complete a request for an incomplete
grade.
Requesting an Incomplete Grade
A grade of incomplete or “INC” is not automatically assigned to students, but rather must be requested by the
student by submitting a Petition for and Work to Remove an Incomplete Grade Form. Requests for an incomplete
grade must be made on or before the date of the final assignment or test of the term. The form will not be available
after the last day of the term. A grade of “INC” does not replace an “F” and will not be awarded for excessive
absences. An “INC” will only be awarded to student presenting a valid case for the inability to complete coursework
by the conclusion of the term.
It is ultimately the instructor’s decision to grant or deny a request for an incomplete grade, subject to the policy rules
below.
Policy/Rules for granting an Incomplete (INC)
 An incomplete cannot be issued without a request from the student.
 To qualify for an incomplete, the student must:
o Have completed over 50% of the course material and have a documented reason for requesting the
incomplete. (50% means all assignments/exams up to and including the mid-term point, test,
and/or assignments.)
o Be passing the course at the time of their request.
If both of the above criteria are not met an incomplete cannot be granted.
An INC is not a substitute for an F. If a student has earned an “F” by not submitting all the work or by receiving an
overall F average, then the F stands.
Academic Integrity
Troy University has a rigorous Standards of Conduct and Honor Code, which requires all members of the Troy
University community to maintain the highest standards of academic honesty and integrity. Cheating, plagiarism,
lying, and stealing are all prohibited. All violations of the Standards of Conduct and Honors Code will result in me
taking the appropriate punishment procedures. See http://troy.troy.edu/judicialaffairs/standardsofconduct.pdf for
more information.
Troy University Email Accounts
All students were required to obtain and use the TROY e-mail address that is automatically assigned to them as
TROY students. All official correspondence (including bills, statements, e-mails from instructors and grades, etc.)
will be sent ONLY to the troy.edu (@troy.edu) address. All students are responsible for ensuring that the correct email address is listed in Blackboard by the beginning of Week #1. E-mail is the only way the instructor can, at least
initially, communicate with you. It is your responsibility to make sure a valid e-mail address is provided. Failure on
your part to do so can result in your missing important information that could affect your grade. Your troy.edu email address is the same as your Web Express user ID following by @troy.edu. Students are responsible for the
information that is sent to their TROY e-mail account. You can get to your e-mail account by logging onto the
course and clicking “E-mail Login”.
You are able to forward your TROY e-mail to another e-mail account. You must first access your TROY e-mail
account through the TROY e-mail link found on the Web site. After you log in to your TROY e-mail account, click
on “options” on the left hand side of the page. Then click on “forwarding.” This will enable you to set up the e-mail
address to which you will forward your e-mail.
Campus Disability Services
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It is the policy of Troy University to provide accessible programs, services, activities, reasonable accommodations,
and a harassment-free environment, for any student or employee with a documented disability as defined by Section
504 of the Rehabilitation Act of 1973, as amended, and by the Americans with Disabilities Act of 1990. To provide
the best possible services to students, employees, and visitors, Troy University has designated the Disability
Services Coordinator and the Director of Human Resources on each campus the responsible parties for coordinating
accommodations for persons with disabilities. For more information about physical access to buildings or grounds,
academic or workplace accommodations, or other ADA related services individuals should contact the Disability
Services Coordinator or Director of Human Resources on the specific campus. For information regarding services at
Troy main campus, contact the Director of Adaptive Needs at (334) 670-3220; for services at Troy
University/Montgomery, contact the Disability Services Coordinator at (334) 241-9587; and for services at the Troy
University/Dothan campus, contact the Director of Counseling and Career Services at (334) 983-6556.
Policies and procedures for students with disabilities can be found here:
http://www.troy.edu/studentservices/oracle/2010-2011_Oracle.pdf
Enrollment
Students are responsible for verifying their enrollment in this class. Schedule adjustments should be made by the
deadlines published in the Schedule of Classes (Deadlines each semester are published in the Schedule of Classes
available from the Registrar's Website www.registrar.gmu.edu):
Last day to add: August 20th
Last day to drop without tuition penalty: August 20th
Last day to drop without academic penalty: October 19th
Last day to drop with academic and tuition penalty: December 5th
Other Useful Campus Resources
Academic Catalog
http://www.troy.edu/catalogs/1112undergrad_pdf/index.html
Academic Regulations
http://www.troy.edu/catalogs/1011undergrad/5U_acad_regs.html#GradingSystem
Office of Student Development
http://troy.troy.edu/studentdevelopment/index.html
Personal Counseling Services
http://troy.troy.edu/save/counseling.html
Troy University Libraries
http://library.troy.edu/
Required Textbooks
1. Modern Principles: Macroeconomics (2nd Edition) by Tyler Cowen and Alex
Tabarrok (C&T)
Recommended Reading:
1. The Choice by Russell Roberts (RR)
Supplemental Readings
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I provide additional readings and media links for those students interested in pursuing a deeper understanding of the
topics covered in a lecture. These books, articles and podcasts are not required, and the information not covered in
the assigned readings or lectures will not be on quizzes or exams.
Other Economic Resources
I maintain a list of links to various economic topics on my blog: http://danieljosephsmith.wordpress.com/
The Library of Economics and Liberty maintains an online encyclopedia of economics at:
http://www.econlib.org/library/CEE.html
EconTalk hosted by Russell Roberts offers podcasts on economics subjects at:
http://www.econtalk.org/archives.html#category
Jodi Beggs maintains a website website of teaching videos covering microeconomic material at:
http://www.economistsdoitwithmodels.com/microeconomics-101/
The Manuel H. Johnson Center for Political Economy at Troy University has a Facebook page where links to current
economic topics, research and debates.
http://www.facebook.com/MJCPE.TroyUniversity
Lecture Schedule and Assigned Readings
The reading assignments should be read prior to the class lecture. This is a tentative schedule and is subject to
change depending on the flow of the class. This course is designed to be reading intensive because I need you to
acquire a basic level of understanding to facilitate classroom discussion.
August 16
Introduction & Syllabus
Introduction to Economics
Readings
C&T Chapter 1
RR Chapter 1-2
August 21 & 23
Free Trade
Readings:
C&T Chapter 2
RR Chapter 2-4
August 28 & 30
Supply and Demand
Readings:
C&T Chapter 3 & 4
RR Chapter 5-6
September 4 & 6
Price Ceilings and Price Floors
Readings:
C&T Chapter 5
RR Chapter 7-8
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September 11 & 13
GDP and Economic Growth
Readings:
C&T Chapter 6 & 7
RR Chapter 9-10
September 18 (No Class September 20)
Protectionism
Readings:
C&T Chapter 19
RR Chapter 11-12
September 25 and 27
Sweatshops & Immigration
Readings:
Powell – “An Economic Case for Immigration”:
http://www.econlib.org/library/Columns/y2010/Powellimmigration.html
Powell – “In Defense of Sweatshops”: http://www.econlib.org/library/Columns/y2008/Powellsweatshops.html
RR Chapter 13-14
October 2 & 4
Review (October 2) and Mid-Term Exam (October 4)
October 9 & 11
Political Systems
Readings:
C&T Chapter 21
October 16 & 18
Keynesianism & Fiscal Policy
Readings:
C&T Chapter 17 & 18
October 23 & 25
Money & Banking
Readings:
C&T Chapter 9 & 10
October 30 & November 1
Monetary Policy
Readings:
C&T Chapter 16 & 17
November 6 & 8
Business Cycles, Unemployment, & Great Depression
Readings:
C&T Chapter 11 & 13
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November 13 & 15
Financial Crisis
Readings:
Boettke, Peter J., Daniel J. Smith and Nicholas A. Snow (2011). "Been There Done That: The Political Economy of
Deja Vu, 1950 and 2010" (with Peter J. Boettke and Nicholas A. Snow). In, Steven Kates, ed., The Global
Financial Crisis: What Have we Learnt? Edward Elgar Publishing, 2011. Available online:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1720661
November 20 & 22
No class (Thanksgiving Break)
November 27 & 29
Alternative Monetary Arrangements (November 27) & Review (November 29)
Readings:
Boettke, Peter J. and Daniel J. Smith (2011). “Monetary Policy and the Quest for Robust Political Economy,”
Available online: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1720682
December 4
Final Exam
December 10 11:00 AM – 1:00 PM
Formative Exam