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Transcript
FINAL CRN 10074, 201210
1
PRINCIPLES OF MACROECONOMICS
WESTERN
SCHOOL OF BUSINESS
FALL
NEW MEXICO
ADMINISTRATION & ECONOMICS
UNIVERSITY ******2011******
COURSE NUMBER: ECON 201
TITLE: Principles of Macroeconomics
CRN: 10074
CATALOG DESCRIPTION: The theory of national income accounting and aggregate income determination in
the American economy, monetary theory, functioning of financial institutions, monetary and fiscal policy, and
international trade and payments (3 HMCCN ECON 2113).
STUDENT ACADEMIC OUTCOMES
do):
(What the student who completes the course should know or be able to
1.
2.
Analyze markets using supply and demand.
Interpret economic reporting based on and related to national income accounts such as employment, investment,
economic growth, inflation, government spending, and incomes.
3. Develop and use index numbers.
4. Utilize income and expenditure framework to discuss government spending, taxation, investment, consumption,
and international trade.
5. Discuss the impact of fiscal policies designed to address normative macroeconomic goals such as full
employment and economic growth.
6. Compare alternative models of money supply (Bonds and Money vs. quantity theory of money) and discuss
their impact on government, consumer, and investment spending.
7. Be familiar with the structure and activities of the Federal Reserve System.
8. Propose and forecast the impact of alternative monetary policies used by the Federal Reserve in pursuit of low
inflation and economic growth.
9. Describe the impact of expansion of trade, interpret balance of payments accounts, and discuss the impact of
macro economic variables (interest rates, government spending, incomes, inflation, etc.) on predicted exchange
rate movements.
10. Identify and articulate normative (ethical and social) policies that reflect society’s concerns with current
economic issues regarding aging, income distribution, education, and health. Use positive economic analysis to
evaluate associated social programs such as social security, medicare, student loan programs, and assistance to
needy families.
11. Write using appropriate economics terminology to state positive economic theory and apply it to normative
issues arising from collective and individual behavior.
MEANS OF ASSESSMENT
evaluated):
Assessment
means
(How the student’s achievement of the above academic outcomes will be
Aplia Homework
Learning Activities
Mid Term Exam
Miscellaneous Quizzes
Final Exam
Outcomes Assessed
1-11
1-11
1-8,11
1-11
1-11
Point Total
100
100
TOTAL
Grade Scale: A= 90-100, B= 80-89, C= 70-79, D= 60-69, F= 59 or below.
(Signature of Instructor)
(Date)
George Muncrief, Ph.D.
August 12, 2011
Percentage of final
grade
20%
25%
20 %
15%
20%
100%
1
FINAL CRN 10074, 201210
2
PRINCIPLES OF MACROECONOMICS
Course No:
Econ 201
CRN: 10074
FALL 2011
Credit: 3
Room:
Days: Tuesday, Thursday
Instructor’s Name:
George Muncrief, Ph.D.
Office:
PHELPS DODGE 238
Office Hours:
Monday-Thursday, 1- 2p.m.
Tuesday, 3:30-5:00 p.m.
& By Appointment
PD 114
Instructor’s Phone Numbers:
(W) 575-538-6258
(H) 575-388-4771
(
First Class Meeting:
August 16, 2011
Time: 2-3:15 p.m.
School of BSAD & ECON:
(FAX) 575-538-6264
(Office) 575-538-6322
E-Mail:
[email protected]
Instructor’s Mailing Address:
Western New Mexico University
School of Business Administration
& Economics
P.O. Box 680
Silver City, New Mexico 88062
Text (s):
(Required)
(Required)
(Recommended)
(Recommended)
(Required)
McEachern, William. ECON MACRO 2, 2010-2011,
Southwestern Cengage Learning, Mason, Ohio: 2010
Aplia Homework & Quizzes Principles of
Macroeconomics. Aplia, Belmont, California: 2009.
Wall Street Journal
Macroeconomics, Student's Guide to the Key Principles
of Macroeconomics, Quick Study Academic, BarCharts,
Inc. ISBN 631-5, www.barcharts.com.
“The Story of Money,” “The Story of Foreign
Trade,” “Too Much, Too Little,” “The Story
of Inflation,” “Once Upon a Dime,” “A Penny
Saved.., “ “The Story of Banks,” “The Story
of the Federal Reserve System,” “The Story of
Checks,” “ The Story of Consumer Credit,” &
“The Story of Monetary Policy.” New York
Federal Reserve Bank, 1997, 98, 99, 00.
www.ny.frb.org/pihome/educator/ (Under
Quick Picks, select Order Publications)
(Comic books distributed by the School of Business)
I. Academic Outcomes: (What students completing assigned learning
activities will know or be able to do).
A. Introduction
1. Participate in discussions using a basic vocabulary of micro and macroeconomics.
2. Utilize mathematical tools such as slope, percentages and graphical relationships.
3. Recognize constraints of nature and their role in establishing economics as the science of choice.
2
FINAL CRN 10074, 201210
3
4.
5.
6.
7.
8.
Use a production possibilities curve to represent opportunity cost.
Apply the concepts comparative advantage and absolute advantage.
State and discuss the questions an economic system must address.
Distinguish between normative and positive economics.
Critique the competitive price system with respect to market failure, income distribution, and market
structure.
B. Know definitions of Supply and Demand.
1. Describe the ceteris paribus conditions of Demand and Supply and indicate how changes in
each of the conditions affect Supply and Demand and Equilibrium price and quantity.
2. Use supply and demand to describe behavior of sellers and buyers in individual markets
including characterization of market equilibrium.
a. Distinguish between a change in quantity demanded and a change in demand.
b. Distinguish between a change in quantity supplied and a change in supply.
c. Describe the idealized market structure: pure competition.
C. Macro Introduction
1. Recognize the roles of Households, Government, Firms, and International Trade in the Macro
Economy.
2. Describe different forms of Business Organization.
3. Explain the sources of Government revenue and expenditure patterns.
4. Describe the business cycle.
5. Define Aggregate Demand and Supply.
6. Use the Aggregate Demand and Supply curves to represent inflationary and recessionary
episodes.
7. Define Productivity and explain its significance for the U.S. Economy and welfare of U.S.
citizens.
D. Unemployment
1. Define and calculate the unemployment rate.
2. Describe four types of unemployment
3. Suggest normative policies to address different types of unemployment.
E. Inflation and Recession
1. Know definitions of inflation and recession.
2. Be able to describe situations, events and factors that contribute to inflation and recession.
3. Describe the impact of inflation and recession on employment, output, and interest rates.
F. Name and describe relationship of leading indicators with levels of economic activity.
G. Economic Aggregates and Macroeconomic activity
1. Discuss the treatment of inventory accumulation as unintended investment.
2. Distinguish between intermediate and final goods and services.
3. Define the concept: Gross Domestic Product.
4. Define Consumption, Investment, Inventories, Government spending, and Net Exports
components of the Expenditure Approach to measuring GDP.
5. List and define the components of the Incomes approach to measuring GDP.
6. Explain the concept of value added.
7. Define Depreciation and describe how it is accounted for in national income accounting.
8. Calculate the Gross Domestic Product using the Incomes approach and using the
Expenditures approach.
H. Index Numbers
1. Define, critique, and use the Consumer Price Index.
2. Define, critique, and use the GDP Deflator.
3. Define, critique, and use the GDP Chain Weighted Index.
4. Distinguish between Real and Nominal Gross Domestic Product.
5. Calculate price indices and use them to analyze changes in real purchasing power and output.
I. Keynesian Expenditure Model
1. Use Keynesian Expenditure Model Expenditures Approach to estimate GDP.
2. Use Keynesian Leakages and Injections Approach to estimate GDP.
3. Examine Factors that shift the Consumption Function and their impact on GDP.
3
FINAL CRN 10074, 201210
4
4.
Calculate the Simple Expenditure Multiplier using the Marginal Propensity to Consume and
Marginal Propensity to Save.
5. Review of Investment and determinants of investment in the Keynesian Model.
6. Calculate the Tax Multiplier
7. Utilize the Keynesian Model to examine the impact of alternative fiscal policies (taxes and
government spending) on GDP.
J. Aggregate Demand and Aggregate Supply
1. Aggregate Demand
Develop Aggregate Demand from the Keynesian Expenditure Model.
Note factors that produce movements along the aggregate demand curve.
Describe factors that shift the aggregate demand curve.
2. Aggregate Supply and Supply Side Theories
Derive the Short Run Aggregate Supply Curve
Derive the Long Run Aggregate Supply Curve
Examine Shifters of the Short Run Aggregate Supply Curve
Examine Shifters of the Long Run Aggregate Supply Curve
State supply side policies for Economic Growth
K. Use the AD and AS model to examine fiscal policies to close expansionary and contractionary
gaps
L. Monetary Theory, the Federal Reserve System, and Monetary Policy
1. Review the functions of money, types of money, monetary measurements, and
functioning of financial intermediaries.
2. Know the basic functions and organization of the Federal Reserve System
3. Balance sheets
a. Become familiar with the Federal Reserve Balance Sheet.
b.
Be familiar with individual bank balance sheets.
c.
Relate the individual bank and Federal Reserve balance sheets.
4. Describe the process through which banks create money.
5. Calculate the Simple Deposit Multiplier
1.
2.
6. Distinguish between a simple deposit multiplier and the money multiplier.
7. Know the monetary policies of the Federal Reserve and how they can be used to
affect the money supply.
a.
Open Market operations
b.
Discount Rate
c.
Reserve Requirements
8. Know the Keynesian Theory of Money (indirect channel) based on the
relationship between bonds and money.
9. Quantity Theory of Money: Know the equation of exchange and assumptions to
convert it into the quantity theory of money (velocity of money assumed to be
constant).
10. Use monetary theory to examine Federal Reserve policies to address inflation or
recession.
M. Know the trade off between inflation and unemployment expressed by the Phillips Curve.
N. Discuss Rational vs. Adaptive Expectations.
O. Discuss the crowding out issue relative to Federal Government Deficits.
P. International Trade and Payments.
Exchange Rates
a. Learn the effect of exchange rate movements on exports and imports
b. Discuss factors that affect exchange rate movements
c. Examine attractiveness of foreign financial instruments and investment relative to
exchange rate movements.
d. Be able to distinguish between floating and fixed exchange rates and their consequences for the
domestic economy.
Balance of Payments
4
FINAL CRN 10074, 201210
3.
5
a. Become knowledgeable about the components of the Current Account and Capital Account
b. Explain the long run tendency of the Balance of Payments to balance under floating exchange
rate regimes.
Trade Policies
a.
Compare Quotas and Tariffs for their impact on consumers, producers, and resource use.
b.
Become Knowledgeable about international organizations that facilitate trade: European
Union, World Trade Organization and NAFTA.
c.
Examine other trade issues such as Dumping.
II. Special Instructions (Requirements or activities unique to this course): Always check course
homepage for updates to the course syllabus. Updates will be made as needed for clarification.
A. Evaluation and Academic Integrity:
1. Evaluation of learning activities and exams will be based on process, content, accuracy,
completeness and organization. Performance can be enhanced by carefully reading questions and
instructions, and following suggested formats. For clarification, always consult with the instructor.
LATE LEARNING ACTIVITIES, QUIZZES, AND APLIA HOMEWORK WILL NOT BE
ACCEPTED.
2. Work submitted for a grade must be your own. Plagiarism and copying the work of others and
representing it as your own is academic dishonesty. The WNMU academic integrity policy and
Dept. of Business Administration Academic Integrity Statement govern penalties for cheating and
plagiarism. Standards of academic honesty and integrity, student requirements, administration of
penalties, and appeal processes are described in the WNMU2011-2012 Catalog, pages 61-65. The
School of Business Administration and Economics implementation of integrity policy is described
in the school’s “Academic Integrity Statement” posted on the course homepage.
B.
Attendance, Study Time, Weather Closings, Special Needs, and Routine Communication:
1. Attendance is not optional. Students accumulating three hours or more of unexcused
absences may be administratively dropped from the class. Students are responsible for
missed work and approved make up work.
2. Study time is estimated by the following rules of thumb: for undergraduate classes a minimum of two hours of
outside work for each hour in class and three hours for graduate courses.
3. “WNMU’s policy requires that all official communication be sent via Mustang Express. As a result, all emails
related to your enrollment at WNMU and class communication – including changes in assignments and grades – will
be sent to your wnmu.edu email address (For ECON 201 communication will be through the course
web site: https://wnmu.blackboard.com/webct/entryPage.dowebct ). Please access your Mustang Express e-mail
periodically to check for university correspondence.
4. WNMU closings due to inclement weather: It is the responsibility of the WNMU administration to
determine when to close and to notify the public of its decision. The instructor’s responsibility in case of
official closings is to assist students as needed in order to fulfill the course objectives.
5. Disability Services at WNMU:
Services for students with disabilities are provided through the Academic Support Center’s Disability Services
Office in the MEChA Building 2nd floor.Some examples of the assistance provided are: audio materials for the
blind or dyslexic, note takers, readers, campus guides, audio recorders, a quiet testing area, and undergraduate
academic tutors. In order to qualify for these services, documentation must be provided by qualified professionals on
an annual basis. Disability Services forms are available in the Academic Support Center. The Disability Services
Office, in conjunction with the Academic Support Center, serves as Western New Mexico University's liaison for
5
FINAL CRN 10074, 201210
6
students with disabilities. The Academic Support Center’s Disability Services Office can be contacted by phone at
575.538.6400.
C.. Special Requirements:
The following materials are required to fully participate in ECON 201: Syllabus, calculator, graph
paper, text, APLIA access, business sections of major metropolitan newspapers or the Wall Street
Journal, and a personal computer.
D.
E.
ECON 201 is a WEB enhanced course. Some uses of Blackboard (Course Web Site) are:
1. Student grades. Students see only their own grades and are responsible for monitoring the grade
roster to verify that grades are accurately recorded.
2. Bulletins and announcements
3. Main discussion/forum board.
4. E-mail between the student and instructor.
5. Submission of written assignments as specified.
6. Homework submission as requested.
7. Calendar, notice of instructor posting of feedback, and changes in due dates.
8. Syllabus: Learning Objectives, Evaluations, Reading Assignments, Instructions.
9. Assignment Due Dates (see Aplia web site for Aplia homework due dates).
10. Feedback: Homework and Forums as needed
11. Power Point slides.
12. Links to Economics U$A
Grade Components: Student Homepage, Forum Commentaries & Responses, Homework, Quizzes,
Final Exam, and Reaction Papers.
1. Exams:
a. Midterm Exam, 20% of final grade.
b. Final Exam, 20% of final grade. A comprehensive final exam evaluates the success of the student
and instructor in realizing the academic outcomes of the course. The final will include multiple
choice, short answer and analysis, and True False (if false tell why it is false). The short answer and
analysis portion may include a take home portion, not to exceed 20 percent of the value of the final.
2. Quizzes: 15% of final grade.
3. Learning Activities, 25 percent of final grade, graded S/U.
a. Learning Activity Due Dates: Same day as distributed in class.
b. Learning Activity Cut Off Date: Next class period. No homework makeup
or editing possibilities are planned.
c. Excused Absences: Learning Activity is due at the first class following
the period of time covered by the excused absence.
d. Activity and homework grading criteria Learning activities are graded S/U. S=
satisfactory and receives full credit. U= unsatisfactory and receives no credit. A
homework assignment that is only partially completed is unsatisfactory.
FAIL
PASS
# of Questions
Missing responses
Attempts all questions
Responsible party
May have been copied
Original Work
Shows a repeatable
Does not show work,
Shows Work
solution process (for
answer only.
example, equations,
outline of solution, etc)
Due dates
Late
Timely Submission:
6
FINAL CRN 10074, 201210
7
Readability
Graphs when required or
useful
Completeness of responses
Legible
Complete Graphs
Can’t be read
Incomplete or no graphs
Complete Responses
Too brief to determine if
concept is understood or
mastered
Content of responses
Substantive Responses
Responses not related to
the question or concepts
4.
Aplia Homework, 20 percent of final grade. http://www.aplia.com/ See last page of syllabus for
Aplia Account Activation. Assignment due dates are posted on the Aplia website, due dates will
be changed to reflect class coverage of course content. Aplia homework has strict cutoff dates.
F. Class Participation (zero percentage points of the final grade). Reaction Paper Practice, Power Point
Slides, Handouts, Class Activities, Discussions, Syllabus, and Economics U$A. A reaction paper may
be assigned as a graded learning activity (See scoring the reaction paper below).
1.
Power Point Slides: See the Icon for Power Point Slides at Blackboard . The slides are useful
for organizing the course material emphasized by the instructor.
2. Handouts: See Course Web Page for Instructor handouts.
3. Forum Feedback: Posted at Forum Feedback Icon after Instructor evaluates the Forum
(Forums may be used by the instructor in place of quizzes or a class meeting).
4. Organization and evaluation of a reaction paper.
5. Publisher Web site.
ELEMENTS
1
CITATION
2.
SUMMARY
SCORING THE
REACTION PAPER
AUTHOR, TITLE, SOURCE, DATE,
PUBLISHER
Copy of the article required
If Internet: Complete URL
Pass/Fail
1= P, 0=F
1
1
a. Article description
b. topic sentence for the selected
application
c. Normative information
d. Elements that match theory
e. Impact of changes
3
ANALYSIS
a. qualitative
1
1. explain summarized info with
appropriate econ model and terminology
2. describe a result or give a prediction
3. identify and name changes that shift or
modify a relationship
b. graphical
1
1. graph
2. correctly label the graph
3. show changes on graph
4. show old and new equilibriums
4
TOTAL
7
FINAL CRN 10074, 201210
8
H. Instructor Resources
1. Handouts.
2. Power Point Slides.
3. Learning Activities.
I. ECONOMICS U$A
Log on to the Corporation for Public Broadcasting site to view the ECON USA series. High Speed Internet
connection required. http://www.learner.org/resources/series79.html?pop=yes&vodid=175448&pid=338#
J. Note taking: Notes help you distinguish between “need to know” and “ nice to know.” A good set of notes
reflects structure of the course, and organizes and guides study time. First, outline the main points of each class (a
start is the instructor outline written on the board at the beginning of each class). Create a heading for each major
topic and number the points under each topic as they are introduced. Leave space to insert explanations given by the
instructor and amplification that you add at a later time. If graphs or pages of the text are referred to in feedback,
discussions, or conversations with the instructor, note the page and graph numbers. Immediately after each class
session devote one half to one hour reviewing and expanding your notes. Write in definitions and correlate notes
with text material and homework assignments. Strive to make your learning ACTIVE rather than PASSIVE.
Review by asking yourself “what have I learned today?”
K . Organizing Weekly Learning Activities in ECON 201.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Check course website daily (E mail and calendar).
Match alternate course outline with major topics of Principles of Macroeconomics.
Read text reading assignment
Read assigned handouts.
View Power Point Slides
Complete and submit assigned homework on the Aplia Web site.
Read and select potential articles for class discussion.
Prepare for midterm, quizzes, and final exam.
View CPB-Annenberg Economics U$A Movies
Verify that grades are accurately recorded.
Utilize publisher’s web site learning resources
8
FINAL CRN 10074, 201210
9
COURSE OUTLINE
PRINCIPLES OF MACROECONOMICS
INTRODUCTION, CONSTRAINTS, SUPPLY & DEMAND: Chapters 1, 2, 3, 4, 5, 6. Power Point:
Introduction (PPT are available on Course Web Page).
8/16
1
Course Orientation
Appendix Chapter 1.
Chapter 1 & Syllabus
Introduction
Economics U$A:
Graphing
Resources and
Economic Problem,
Scarcity
Science and Art of Economic Analysis
http://www.learner.org/reso
urces/series79.html?pop=ye
s&vodid=175448&pid=338
#
8/18
2
Learning Activity # 1, Graphing and Macroeconomic Statistics
C3, C5 (Economic
Fluctuations & Growth),
C6
8/23
3
C2
Opportunity Cost,
Comparative & Absolute Advantage,
C18, “the gains from
Terms of Trade, Benefits of Free Trade.
trade.”
Production Possibilities Frontier
Economics U$A:
Increasing and Constant Costs
Markets and Prices
8/25
4
Learning Activity #2, Absolute and Comparative Advantage and
Gains from Trade.
5
8/30
C3
Economic Aggregates,
C6
Actors (Households/income, G/taxes, Businesses/Receipts,
Trade/imports & exports)
Economics U$A:
Productivity,
U.S. Economic Growth
Rule of 70
Sources of Growth (labor is number 1)
Proportional, Progressive, Regressive Taxes
Ability vs. Benefits tax principles
Tax incidence
Learning Activity #3, Progressive vs. Regressive Taxes
9/1
6
C4
Demand
Ceteris Paribus Conditions of Demand
Change in Demand vs. Change in Quantity Demanded
9/6
7
C4
Supply, Ceteris Paribus Conditions of Supply
Economics U$A: Supply
Change in Supply vs. Change in Quantity Supplied,
and Demand
Equilibrium
Rationing Function of Prices.
Guiding Function of Prices
Reaction Paper Practice.
9/8
8
Learning Activity #4, Demand, Supply, & Equilibrium
MEASURING THE MACRO ECONOMY: UNEMPLOYMENT & INFLATION, NATIONAL INCOME
ACCOUNTING, PRICE INDICES: CHAPTERS 5, 6, 7, 8. Power Point: Income Accounting
9/13
9
C5
Leading Economic Indicators
Economics U$A: Booms
Business Cycles
and Busts
Aggregate Demand
Aggregate Supply
10 9/15
C7, C7 appendix
Circular Flow Model
9
FINAL CRN 10074, 201210
10
National Income Accounting,
Gross Domestic Product,
Value Added,
Critique of GDP
Learning Activity #5: National Income and Product Accounts
11
9/20
12
9/22
13
9/27
Index Numbers,
Consumer Price Index,
Real vs. Nominal,
Inflation
Learning Activity #6, Indices, Inflation, & Unemployment
C7
C8
Economics U$A:
Inflation
C8
Unemployment,
Discouraged Workers,
Labor Force Participation
KEYNESIAN EXPENDITURE MODEL, AGGREGATE DEMAND, AGGREGATE SUPPLY, FISCAL
POLICY: CHAPTERS 9, 10, 11, 12, 16. PowerPoint: Expenditure Model
14
15
9/29
10/4
Quiz: Keynes, Business Cycle
Introduction to the basic Keynesian expenditure model:
C, I, G, Net Exports.
Leakages & Injections
Shifters of the Consumption Function
Movements along the Consumption Function
Marginal Propensity to Save,
Marginal Propensity to Consume,
Expenditure Multiplier
Quiz: Expenditure Model, Stagflation, Fiscal Policy
Economics U$A:
Booms and Busts;
Economics U$A:
John Maynard
Keynes
C9.
Handout: Expenditure
Model Example
Economics U$A:
Fiscal Policy;
Economics U$A:
Stagflation
16
10/6
17
10/11
18
10/13
19
10/18
Mid Term Exam
Learning Activity #7 Keynesian Expenditure Model
Chapters 1-8
Investment Demand and Interest Rates,
Role of Inventories
Government
Tax Multiplier
C9
C10, appendix B
C10
Handout: Expenditure
Rounds for a New
Equilibrium.
Handout: Expenditure
Model with Lump Sum Tax
Aggregate Demand
Price level changes vs. shifts in AD.
C10, pp. 198-202
C10, pp. 203-212
10
FINAL CRN 10074, 201210
11
AD & Equilibrium in the Keynesian Model.
C11
Short Run Aggregate Supply
Economics U$A:
Long Run Aggregate Supply
Productivity
Natural Rate of Output
Aggregate Supply and Labor Markets,
Potential vs. Actual GDP,
Supply Shocks,
Natural Rate of Unemployment,
Supply Side Policies for Growth.
10/25
21
Learning Activity #8: Aggregate Demand & Aggregate Supply
C12 & Appendix C12,
Fiscal Policy to close expansionary gaps
C13,
Fiscal Policy to close contractionary gaps
C17
Active vs. Passive Fiscal Policy,
Lags in Fiscal Policy
Automatic Stabilizers
Economics U$A:
Impact of Price Level Changes on Effectiveness of
Federal Deficits
Expenditure Multipliers
Rational Expectations
Adaptive Expectations
Federal Budgets & Public Policy
Learning Activity #9: Keynesian Tax Multiplier
MONETARY THEORY & POLICY, ACTIVE VS. PASSIVE MACRO POLICIES, FEDERAL RESERVE:
CHAPTERS 13, 14, 15, 16, 17. PowerPoint: Monetary Theory
10/27
22
handout: Medium of
Barter & Origin of Money,
Exchange in Jail
Functions of Money
C14
Types of Money, for example, commodity money.
A good money is……
Economics U$A: The
Fractional Reserve Banking System
Banking System
Financial Intermediaries,
20
10/20
23
11/1
24
11/3
25
11/8
26
11/10
Federal Reserve,
the Great Depression,
Recent Banking Events
Monetary Aggregates: M1 & M2.
The Bank Balance Sheet: Sources and Uses of Funds.
Fed Funds Rate vs. Discount Rate
How Banks create money:
Reserves,
required reserves,
excess reserves,
vault cash.
Simple Deposit Multiplier
Money Multiplier
The Fed’s Tools: Open Market Operations, Discount Rate, &
Reserve Requirements
Goals of the Fed,
Federal Reserve Balance Sheet,
Fed Creates Money Out of “Thin Air.”
Policy Rules vs. Discretion
Reform of Glass-Steagall
C15
Handout: “Bank Balance
Sheet.”
Handout: “Notes: Banks
Create Money”
C 15
C15
WEB CT Handout: Fed’s
Balance Sheet.
Economics U$A: The
Federal Reserve
Learning Activity #10: Banks, Money Creation, Fed Tools, & Monetary
Policy
11
FINAL CRN 10074, 201210
27
28
11/15
11/17
Indirect Channel (Short Run), a Keynesian View:
Bonds and Money
Money Supply,
Interest Rates,
Investment,
Aggregate Expenditures and Aggregate Demand.
Learning Activity #11: Bonds and Money
Direct Channel (Long Run), a Monetarist View:
Equation of Exchange,
Velocity,
Quantity Theory of Money
Money & Macro Economic Equilibrium
Learning Activity #12: Quantity Theory of Money
12
C16
WEB CT Handout: Price
of Bonds and Interest Rates
C16
Economics U$A:
Monetary Policy
C17
Economics U$A:
Stabilization Policy
INTERNATIONAL TRADE AND PAYMENTS, TARIFFS AND QUOTAS: CHAPTERS 18, 19. PowerPoint:
International Trade
11/29
29
C19
Foreign Exchange Markets and Exchange Rates
Handout: “International
Appreciation and Depreciation under floating exchange rate
Trade Questions”
regimes
Economics U$A:
Revaluation and devaluation under fixed exchange rate systems
Exchange Rates
 Factors affecting Foreign Exchange Rates:
C19
Handout: “The Lake
Short Run (The Lake: interest rates and expected exchange
Diagram”
rates)
Long Run (income, productivity, price level, tastes and
preferences)
Purchasing Power Parity & Big Mac Index
Learning Activity #13: Exchange Rates, International Capital
Flows, and Purchasing Power Parity.
30
12/1
Quotas vs. Tariffs,
Winners & losers from trade restraints
Producer and Consumer Surplus,
Trade Policies
C18,
Economics U$A:
International Trade
Learning Activity # _14__: Tariffs and Quotas
31
12/8
Balance of Payments: Capital and Current Accounts
FINAL EXAM Thursday, December 8th, 12:30-2:30 p.m.
Comprehensive
Scheduled Learning Activities ECON 201 (some Learning Activities may be eliminated due to time constraints)
Number
Description
Completed
1
Graphing
2
Comparative Advantage & Absolute
Advantage
3
Progressive vs. Regressive Taxes
4
Supply & Demand
5
National Income & Product
Accounting
12
FINAL CRN 10074, 201210
6
7
8
13
Fixed vs. Chained Weight Index
Keynesian Expenditure Model
Aggregate Demand & Aggregate
Supply
Keynesian Expenditure Model with
Taxes
Monetary Policy
Bonds and Money
Equation of Exchange & Quantity
Theory of Money
Exchange Rate Risk
Tariffs, Trade, and Efficiency
Balance of Payments
Reaction Paper
9
10
11
12
13
14
15
16
4
ECON 201
PRINCIPLES OF MACROECONOMICS
ALTERNATE COURSE OUTLINE
"A course in macroeconomics in 25 words or
Interpretation: How to
less."
remember major
components of
Macroeconomics
GET A JOB.
National Income
Accounting & Inflation
and Unemployment
SPEND ALL OF YOUR MONEY.
Keynesian Expenditure
Model
BORROW ALL YOU CAN.
Monetary Theory and
Policy
AVOID TAXES.
Fiscal Policy
5
BUY AMERICAN.
1
2
3
International Trade,
Payments, and Foreign
Exchange
Expanded Definitions
Measuring and Tracking
the Economy
Interdependence of
economic units
Money, Banks, and the
Federal Reserve
Taxes and Government
Spending
Measuring and Tracking
Net Exports, Capital Flows
and impact of Exchange
Rate Movements and
Normative Trade Policies
http://www.learner.org/resources/series79.html?pop=yes&vodid=175448&pid=338#
Log on to the Corporation for Public Broadcasting site to view the ECON USA series.
#
#
Title
1
1
Resources and Scarcity
2
2.
Date
Completed
Markets and Prices
Wilderness preservation and
WWII productivity show how
society allocates and transforms
resources.
Developer William J. Levitt's lowcost housing and Reggie
Jackson's contract help explain
the powerful forces of supply
and demand.
13
FINAL CRN 10074, 201210
3
16.
4
3.
5
4.
6
7.
7
11.
8
5.
9
6.
10
10.
11
12.
12
8.
13
9.
Supply and Demand
U.S. Economic Growth
Booms and Busts
Inflation
Productivity
John Maynard Keynes
Fiscal Policy
Stagflation
Federal Deficits
The Banking System
The Federal Reserve
14
The California drought, the Arab
oil embargo, and the designer
jeans craze reveal the forces of
supply and demand.
This episode documents the
GNP's greatest achievements
and failures since its introduction
in the 1930s.
America's roller-coaster economy
is examined in light of the
economic theories of Marx,
Schumpeter, Keynes, and Say.
This program examines the
economic and social costs of the
inflationary spiral of the early
1960s and questions whether
the problem of inflation has been
solved.
The cause of America's great
productivity slide is examined,
along with possible solutions.
This program introduces
Keynesian economic theory and
analyzes the Depression.
This program explores how the
government's tax and spending
policies are used to reduce the
severity of business cycle
fluctuations.
Demand-pull and cost-push
inflation: looking at the
economic crises of the 1970's
and the economic expansion of
the 1990's. Updated 2002.
This program examines efforts to
reduce the deficit, including the
Gramm-Rudman Act and a
proposed constitutional
amendment requiring balanced
budgets. Updated 2003.
The S&L crisis is reviewed with a
discussion of deposit insurance
and the accountability of
financial institutions. This
program was revised in 1992.
The rising power of the Federal
14
FINAL CRN 10074, 201210
14
13.
15
14.
16
27.
17
28.
Monetary Policy
Stabilization Policy
International Trade
Exchange Rates
15
Reserve Board and the pros and
cons of increasing reliance on
monetary policy are examined.
Three Federal Reserve Chairmen
— Arthur Burns, Paul Volcker,
and Alan Greenspan — are
examined. Updated 2002.
This program covers the debate
between monetarists and
Keynesians, supply-side
economics, and the 1985 Bonn
Economic Summit.
This program discusses the
effects of international trade,
tariffs, and quotas versus free
trade. Updated 2002.
Governments try to control
exchange rates, as seen in the
Plaza Accord of 1985 and the
Louvre Accord of 1987.
Updated 2003.
15
FINAL CRN 10074, 201210
16
How to access your Aplia course
ECON 201 Principles of Macro 201210 CRN 10074
Instructor: George Muncrief
Start Date: 08/16/2011
Course Key: SAW6-A5FF-Y24S
Registration
Aplia is part of CengageBrain, which allows you to sign in to a single site to access your Cengage
materials and courses.
1.
Connect to http://login.cengagebrain.com/.
2.
If you already have an account, sign in. From your Dashboard, enter your course key
(SAW6-A5FF-Y24S) in the box provided, and click the Register button.
If you don't have an account, click the Create an Account button, and enter your course key
when prompted: SAW6-A5FF-Y24S. Continue to follow the on-screen instructions.
Payment
Online: Purchase access to your course (including the digital textbook) from the CengageBrain
website.
Bookstore: Purchase access to Aplia from your bookstore. Check with the bookstore to find out what
they offer for your course.
If you choose to pay later, you can use Aplia without paying until 11:59 PM on 09/05/2011.
16