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Principles of Macroeconomics
ECO 2251 – TBAA
Session II – Summer 2012
MTWTH 10:30 – 12:50 Bibb Graves 211
Instructor: Jennings Byrd, PhD
Office Location: 209 Bibb Graves
Email: [email protected]
Office Telephone: 334.808.6205
Office Hours:
T/TH 9:30 – 10:30, 1:30 – 3:30
Also available by request
Prerequisites: None
While there are no prerequisites for this course, basic understanding of arithmetic, algebra and graphs
will be of great benefit to you in successfully completing this course. I will show you how to solve
problems and read graphs in class, but it is up to you to comprehend what you have learned.
Course Description: Macroeconomic theory of the national economy with emphasis on income,
employment, banking, and public policy.
Course Objectives: Upon completion of the course, the student should be able to:
1. Contrast the market system with alternative methods.
2. Explain how the price system allocates economic resources.
3. Identify the different sectors in the economy and explain their respective roles.
4. Use national income accounting to measure the overall performance of the economy.
5. Outline the relationships among spending, output, employment, and inflation.
6. Explain changes in the equilibrium price level, output level, and level of employment using the
aggregate demand (AD) and aggregate supply (AS) framework.
7. Assess the impact of fiscal policy on an economy.
8. Explain money creation and control of the money creation process by the Federal Reserve System.
9. Assess the impact of monetary policy on an economy.
10. Explain and assess the macroeconomic impact of international activity on an open 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.
Textbook: McConnell, Brue, and Flynn. Macroeconomics, 2010 (Troy Custom Text)
Course Web: http://troy.blackboard.com/webapps/portal/frameset.jsp
Supplement Materials:
1) The following website contains additional prep materials such as study cards and practice quizzes.
http://highered.mcgraw-hill.com/sites/0073365955/student_view0/index.html
2) To aid you in math and graph problems, I will post supplemental questions and worked problems
on blackboard for selected chapters.
3) PowerPoint slides will be available for each chapter as we complete each chapter.
Exams: There will be four exams, equally weighted, given throughout the semester. Each exam will
only cover material that has been covered since the prior exam or in the case of the first exam since
lectures began. These exams will consist of 20-25 multiple choice questions that will cover
definitions, calculations, analysis and graphs. You may use a 3x5 index card for each exam.
However, if your card exceeds 3x5 I will scale it down appropriately.
Drop Grade: Life’s hard and many of you have extracurricular activities that may prohibit you from
being fully prepared for an exam. Being aware of this, I will allow each student to drop their lowest
exam score prior to taking the final. However, to get this “reward” YOU must write and sign a note
stating you wish to pursue this option. YOU will turn this note into me on the last day of class.
Homework: There will be two homework assignments, equally weighted, given throughout the
semester. Each assignment will consist of two parts (each is 50% of the total homework grade):
multiple choice questions and a critical analysis question. The multiple choice section will consist of
20 questions and will be posted on Blackboard. There will be no time limit for this assignment. For
the critical analysis section, you will be asked to answer a topic(s) that we will have discussed in
class using economic reasoning.
Final Exam: 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. I am happy to report that we are no longer constrained by prior grading of the final. Your
final exam will count 10% toward your final grade. 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. The exam will cover all of the learning
objectives listed in this master syllabus. The exam will be two 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.
Grading Policy:
Exams (4 total)
Homework (2 total)
Comprehensive Final Exam
Grading Scale:
A 90-100%
B 80-89%
C 70-79%
D 60-69%
F 0-59%
68%
22%
10%
Class Procedure: The method of delivery will be lecture. Students are encouraged to participate in
lecture, but not have conversations about their life to other students while in class. Students are also
expected to attend class and complete reading assignments. I like to use the standard “chalk and talk”
delivery, and ask a lot of questions. I have found that PowerPoint disengages students from the
lecture and only serves to further the use of their imagination. Economics can be a subject of opinion.
Economists have established basic principles to guide individuals, firms, etc. to decisions and
policies, but these are constantly being challenged. I encourage you to think about what is covered in
class and consider if it makes sense.
Attendance Policy: You are your own free person. You have the capability to make your own
decisions and going to class is one of them. Since I am an economist, I should adhere to the very
principles I teach, which state why you should or should not attend class. Therefore, I will not force
you to attend class, meaning I have no attendance policy. However, I ask that if you decide to attend
class, be on time and prepared. Not doing so is rude to those who are in class and are prepared. Also,
if you attend class and decide to leave early without informing me, don’t expect me to help you out
when it comes to your final grade.
General Supports: The computer labs in Bibb Graves are available for student use.
Additional Services: AMERICANS WITH DISABILITIES ACT: Troy University supports Section
504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, which insure
that postsecondary students with disabilities have equal access to all academic programs, physical
access to all buildings, facilities and events, and are not discriminated against on the basis of
disability. Eligible students, with appropriate documentation, will be provided equal opportunity to
demonstrate their academic skills and potential through the provision of academic adaptations and
reasonable accommodations. Students with disabilities, or those who suspect they have a disability,
must register with the Disability Services Coordinator in order to receive accommodations. Students
currently registered with the Disability Services Office are required to present their Disability
Services Accommodation Letter to each faculty member at the beginning of each term. If you have
any questions, contact the Office of Adaptive Needs Program (Eldridge Hall), or call 670-3220/3221.
Cell Phones and Other Electronic Devices: Turn off your cell phone or put it on vibrate, and DO
NOT ANSWER A CALL. In addition, if texting and social networking are essential to your life and
you cannot be one minute without your phone, do not ask me to repeat something you did not
understand because you were texting while I was talking, nor should you come to my office asking
for additional assistance. As far as computers, many students use their computers to take notes. Note,
while this is an acceptable form of note taking, this class makes use of many equations and graphs,
which are more difficult to efficiently put into a computer in a timely manner. This means that those
of you who use a computer are likely doing so to update your Facebook page, surf the internet, or
work on another project. See my rule about texting when it comes to asking me questions.
Incomplete Work Policy: If you miss a test for any acceptable reason, then you will be allowed to
make up the exam. Acceptable reasons are determined by ME. You are to notify me that you will
be missing the exam prior to the exam being taken. If you do not notify me prior to the official exam
date and time, then your grade will be deducted 10%.
Cheating Policy: Simply put, DON’T DO IT. If you are caught cheating your grade for the course
will be an F. Consult Oracle on the policy of cheating.
Dates of Interest:
First day of class June 27th
Last day of class July 25th
Exams July 5th, 12th, 19th, and 25th
Final exam TBD
Tentative Course Outline
Introduction to Economics and the Economic Way of Thinking
Ch. 1 Limits, Alternatives, Choices (and appendix)
Ch. 2 The Market System and the Circular Flow
Ch. 3 Demand, Supply, and Market Equilibrium
Basic Macroeconomic Variables
Ch. 6 Measuring Domestic Output & National Income
Ch. 8 Business Cycles, Unemployment, & Inflation (Homework#1)
Macroeconomic Models
Ch. 9 Basic Macroeconomic Relationships
Ch. 11 Aggregate Demand and Aggregate Supply
Macroeconomic Policy
Ch. 4 The US Economy: Private and Public Sectors
Ch. 12 Fiscal Policy, Deficits, and Debt
Ch. 13 Money and Banking
Ch. 14 Money Creation
Ch. 15 Interest Rates and Monetary Policy (Homework #2)
Growth and International Macroeconomics
Ch. 7 Economic Growth
Ch. 16 Extending the Analysis of Aggregate Supply (Selected Parts)
Ch. 17 The Balance of Payments, Exchange Rates, and Trade Deficits
Extra Credit
Extra credit is given at my discretion. If I do offer extra credit, I have to give all students the same
opportunity (be it in assignments, attendance, etc.) This means I do not want you coming to my
office at the end of the semester wanting extra credit to boost your grade. First this shows special
interest. Secondly, and more importantly, I have heard of all kinds of ways to do extra credit and the
most common way is to write a paper. To clarify, I do not want to read a paper because I have to do
enough of that on my own.