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Fall 2013
Economics 101
San Diego State University
Principles of [Macro]Economics
Larry Smith
I. Information about me
Larry Smith
Email: [email protected]
Office: AH-4189; Office hours 9-10 MWF or by appointment
II. Information about the course
Text: Hubbard & O’Brien, Macroeconomics, 4th ed. (w/MyEconlab).
MyEconLab access: See registration and login instruction sheet
Course Description:
This is an introductory course focusing on analysis of the larger economy. Topics
will include market systems; economic fluctuations including growth,
unemployment, and inflation; national income accounts; macroeconomic
equilibrium; money and financial institutions; monetary and fiscal policy; and
international trade and finance. There will be specific discussions of different
schools of economic thought on public policy in this area: the Keynesian view, the
Monetarist view, the Supply Side view, and the Rational Expectations view. These
views will be related to past episodes and the current recession of 2007 to present.
Student Learning Outcomes:
Upon completion of this course, students will be able to:
1) Using basic economic principles, identify the consequences of scarcity and
explain how changes in opportunity cost affect behavior.
2) Using the model of supply and demand, describe how the interaction of
supply and demand in a market determines market price and quantity,
illustrate how markets react to excess demand and supply, and illustrate how
price floors, price ceilings, and taxes affect market outcomes.
3) Using government data, compute the following measures of aggregate
economic activity: domestic product, national income, unemployment, and
inflation; apply these measures of economic activity to the behavior of the
business cycle; explain the difference between nominal and real measures of
the economy.
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4)
Using the aggregate supply and demand model, distinguish between long run
and short run equilibrium in the macroeconomy; explain how the
macroeconomy reaches equilibrium and how it moves from equilibrium to
equilibrium; identify the factors that can change the price level, real GDP, and
the unemployment rate.
5) Utilize the Keynesian, Monetarist, and Supply-side approaches to model the
economy’s movement to full employment.
6) Utilize the Keynesian model to explain how, and under what conditions, the
multiplier works, and identify the difference between expansionary and
contractionary fiscal policy.
7) Identify the differences between demand-side and supply-side fiscal policy,
and provide examples of how each might be used to shape national fiscal
policy.
8) Using materials provided in class/textbook, explain what money is, how it is
created, and its role in determining macroeconomic equilibrium; explain the
Federal Reserve System’s role in determining macroeconomic equilibrium;
explain the difference between the activist and non-activist approach as it
applies to monetary policy and the impact of expectations and lags in the
implementation of monetary policy.
9) Using various growth models presented in class, discuss the causes of
economic growth and identify policies to promote economic growth.
10) Using opportunity cost data, explain comparative advantage and how it affects
trade.
III. Grades and grading
Your final grade will depend on grades on the following activities:
500 points total:
Homework………………………………………….……100 points
Quizzes…………………………………………………..100 points
Three hourly exams, 100 points each……………………300 points
At the end of the semester, I will put your total “raw points” [no extra credit] on a
curve and determine a Tentative Final Grade for you. On December 11 I will offer
you the Tentative Final Grade. You may accept that grade or take the Final Exam
on December 13 to try to improve the tentative grade.
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IV. Further information
Extra credit.
You may earn up to 25 points of extra credit during the semester. Note the cap on
extra credit: You can boost a grade one-half of a grade with extra credit, but
you cannot earn a living on it. The impact of extra credit will be, usually, to boost
a grade about a half grade; for example, from C+ to B-, etc.
Topics and readings.
We will follow the outline on the separate sheet. The actual dates are approximate.
Pay strict attention in class to the actual assigned reading. I will always keep you
well informed. As always, there are no tricks and no surprises.
Working together.
You may always work together on homework and other out of class projects. This
is not cheating. You can learn a lot from your classroom colleagues. Your work on
in-class quizzes and exams must, of course, be your own.
Fundamental rules of homework:
a. Always in ink/word processing. Pencil will get zero points.
b. No late papers accepted for any reason. If you know you are going to be absent
when a paper is due, give it to a classmate to hand in for you. I will NOT print
out email attachments.
c. Always permissible to work with other people. List them on your paper
somewhere. Some assignments will be team assignments. Get to know some
people around you.
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