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INSTRUCTIONAL PACKAGE
ECO 210
Principles of Macroeconomics
Spring 2015
INSTRUCTIONAL PACKAGE
Effective Term: Spring 2015
COURSE PREFIX: ECO 210
COURSE TITLE: Principles of Macroeconomics
CONTACT HOURS: 3
CREDIT HOURS: 3
RATIONALE FOR THE COURSE:
To develop the kind of economic reasoning necessary to analyze and understand issues
that will be confronted in the ever evolving and changing national and world economies.
COURSE DESCRIPTION:
This course is a study of the fundamental principles and policies of a modern economy to
include markets and prices, national income accounting, cycles, employment theory and
fiscal policy, banking and monetary controls and the government's role in economic
decisions and growth.
PREREQUISITES: None
REQUIRED MATERIALS:
Principles of Macroeconomics, N. Gregory Mankiw, Seventh Edition. South-Western.
Aplia online homework management software access – ISBN: 9781305134935
http://hortec.bncollege.com/webapp/wcs/stores/servlet/PRINOF_MACROECONOMICS
WACCESS_LL_IP/BNCB_TextbookDetailView?sectionId=64610846&item=Y&c
atalogId=10001&langId=1&displayStoreId=51560&storeId=51560&partNumber=394_844001258&product
Id=550024782412
ADDITIONAL REQUIREMENTS:
Knowledge of simple algebra and graphing is assumed
TECHNICAL REQUIREMENTS:
Course information available on the course homepage on your WaveNet account.
Attention HGTC Students:
The faculty and administration of HGTC are committed to enhancing your learning
experience at the College through improved methods of instruction and support services.
For information on Student Support Services or questions about your curriculum program
please refer to your Wavenet Homepage.
STUDENT COURSE LEARNING OUTCOMES
1. Analyze key macroeconomic variables in regard to economic activity.
2. Predict the result of expenditure changes on the national economy.
3. Determine when and how government fiscal policy can be used to effect economic
activity.
4. Identify the function of money within the economy.
5. Analyze the banking system and how monetary policy can be used to effect economic
activity.
BRIEF COURSE OUTLINE*
Chapter 1: Economic Principles
Chapter 2: Thinking Like an Economist & Math Review
Chapter 3: Interdependence and the Gains From Trade
Exam #1
Chapter 4: The Market Forces of Supply & Demand
Chapter 15: Unemployment
Exam #2
Chapter 10: Measuring a Nation’s Income
Chapter 11: Measuring the Cost of Living
Chapter 12: Production & Growth
Chapter 17: Money Growth & Inflation
Exam #3
Chapter 20: Aggregate Demand & Aggregate Supply
Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
Chapter 16: The Monetary System
Exam #4
Final Exam #5
*Course content and order subject to change based on needs of students and course progression
ECO 210 Course Outline - Spring 2015
Day
Date
Topic
T
1/13
First Principles
R
1/15
Economic Systems
T
1/20
Production Possibilities Frontier Model
R
1/22
Specialization & Trade
T
1/27
International Trade
R
1/29
Exam 1 Chapters 1, 2, 3
T
2/3
S&D: Demand
R
2/5
S&D: Supply and Equilibrium
T
2/10
S&D: Shifts in Equilibrium
R
2/12
S&D: Price Controls
T
2/17
The Minimum Wage
R
2/19
Unemployment
T
2/24
Exam 2 Chapters 4, 6, 15
R
2/26
Macro Overview & Business Cycles
T
3/3
The Price Level & Real Income
R
3/5
Gross Domestic Product
T
3/10
Nominal & Real GDP
R
3/12
Inflation & Deflation
T
3/17
Long Run Growth
R
3/19
Exam 3 Chapters 10, 11, 12, 17
T
3/24
Aggregate Demand
R
3/26
Aggregate Supply
T*
3/31
Spring Break
R*
4/2
Spring Break
T
4/7
Long Run Equilibrium
R
4/9
Keynesian Stabilization
T
4/14
Consumption, Savings, and the MPC
R
4/16
The Spending Multiplier & Closing Output Gaps
T
4/21
Deficits, Debt, and Stabilizers
R
4/23
The Federal Reserve, rrr, and Bank Balance Sheets
T
4/28
The Money Multiplier & Monetary Policy Tools
R
4/30
Exam 4 Chapters 16, 20, 21
T
5/5
Final Exam Week
SPECIFIC STUDENT LEARNING OUTCOMES
Chapter 1: Economic Principles
Economic Terminology
How People Make Decisions
How People Interact
How the Economy as a Whole Works
By the end of this chapter students will be able to:
1. Identify and apply the four principles of how people make decisions
2. Identify and explain the three principles of how economic agents interact
3. Identify the three principles of how the economy as a whole operates
4. Explain the economic problem and why scarcity necessitates trade-offs
Chapter 2: Thinking Like an Economist & Math Review
Economic Models
The Circular Flow Model
Positive vs. Normative Analysis
Why Economists Disagree
Graphs of a Single Variable
Graphs of Two Variables (The Coordinate System)
Curves and the Slope of a Line
By the end of this chapter students will be able to:
1. Explain why models are used in economics
2. Identify the flow of goods, money, and resources within the market for
goods and services as well as the factor market
3. Identify the differences between the study of Microeconomics and
Macroeconomics
4. Identify the difference between positive and normative statements
5. Interpret data from graphs composed of one or two variables
6. Calculate the Slope of a Line
7. Identify the difference between a positive and negative relationship
Chapter 3: Interdependence and the Gains From Trade
The Production Possibilities Frontier Model (PPF)
Specialization and Trade
Comparative and Absolute Advantage
International Trade
By the end of this chapter students will be able to:
1. Identify the economic concepts represented by the PPF
2. Illustrate a production possibilities frontier for an individual or country
3. Calculate the benefits from specialization and trade
4. Identify the difference between comparative and absolute advantage
5. Calculate the per-unit opportunity cost for a country or individual
6. Identify which good a country should import and/or export in order to
maximize the gains from trade
Chapter 4: The Market Forces of Supply & Demand
Markets and Competition
The Demand Curve Shifts in Demand
The Supply Curve and Shifts in Supply
Market Equilibrium
Market Imbalances (Temporary Surplus and Shortages)
Shifts in Equilibrium
By the end of this chapter students will be able to:
1. Identify and explain what is meant by a competitive market
2. Identify the non-price determinants of Supply & Demand
3. Construct Supply and Demand curves from Supply and Demand schedules
4. Identify and illustrate the difference between a shift in a curve and
movement along a curve
5. Determine the resulting equilibrium price and quantity in a given market
6. Identify the existence of a surplus or shortage within a market
7. Identify how a market eliminates a temporary surplus or shortage
8. Analyze and predict the effect of a change in supply and/or demand on the
equilibrium price and quantity of a good or service
Chapter 15: Unemployment
Measuring Unemployment
The Market for Labor
The Effect of Minimum Wage Legislation
Types of Unemployment
By the end of this chapter students will be able to:
1. Identify who is and is not classified as unemployed
2. Calculate the unemployment and labor force participation rate
3. Construct a labor market diagram
4. Identify the equilibrium wage and quantity of employment in a market
5. Identify the type of unemployment an individual may be experiencing
Chapter 10: Measuring a Nation’s Income
Gross Domestic Product
The Components of GDP
Real vs. Nominal GDP
GDP per Capita
Criticisms of GDP Measurements
By the end of this chapter students will be able to:
1. Explain how GDP is measured
2. Calculate a nation’s Gross Domestic Product
3. Identify changes in a nation’s GDP
4. Differentiate between real and nominal GDP and calculate each
5. Calculate the GDP Deflator and GDP per capita
6. Identify the best measure of income for a given situation
7. Identify the shortcomings of GDP as sole measure of economic well being
Chapter 11: Measuring the Cost of Living
The Price Level
The Consumer Price Index
By the end of this chapter students will be able to:
1. Explain what it is that a price level measures
2. Calculate the Consumer Price Index
3. Identify how a price index is constructed
4. Convert nominal values into real values using a price index
5. Identify the need for indexation
Chapter 17: Money Growth & Inflation
What is Inflation
Sources of Inflation
Costs of Inflation
Hyperinflationary and Deflationary spirals
By the end of this chapter students will be able to:
1. Identify and explain what inflation is
2. Calculate inflation given a price index
3. Identify the three sources and types of inflation
4. Identify the distributional effects and economic costs of inflation
5. Discriminate between a hyperinflationary and deflationary economic
climate
Chapter 12: Production & Growth
Worker Productivity and Standard of Living
Sources of Productivity Growth
By the end of this chapter students will be able to:
1. Identify what it is that accounts for varying standards of living
2. Calculate per worker productivity and productivity growth
3. Utilize the Rule of 72 to forecast long run changes in living standards
4. Identify the components of worker productivity
5. Identify policies designed to boost a nation’s productivity growth
Chapter 13: Saving, Investment, and the Financial System
The Global Financial System
The Market for Loanable Funds and the Equilibrium Interest Rate
The Role of Savings and Investment in Promoting Economic Growth
By the end of this chapter students will be able to:
1. Identify the role that banks play in the financial system
2. Identify the effect of a change in the interest rate on the quantity of
savings supplied and investment demanded
3. Forecast the effect of changes in savings and investment on both the
equilibrium interest rate and the equilibrium quantity of investment
Chapter 20: Aggregate Demand & Aggregate Supply
Business Cycles and Short Run Economic Fluctuations
The Shape of the Aggregate Demand, Aggregate Supply Curves (SR & LR)
The Determinants of AD, SRAS, and LRAS
Short Run Macroeconomic Equilibrium
Potential GDP and Output Gaps
The Long Run Macroeconomic Equilibrium Adjustment Process
By the end of this chapter students will be able to:
1. Identify the three key facts about economic fluctuations
2. Identify the assumptions of Classical Economics and the reality of ShortRun fluctuations
3. Identify the reasons why the AD curve is downward sloping
4. Identify the reasons why the SRAS curve is upward sloping
5. Identify the reasons why the LRAS is vertical
6. Identify how the LRAS relates to potential GDP and the natural rate of
unemployment
7. Identify the equilibrium level of GDP, the equilibrium price level, and the
relative level of unemployment using the AD/AS model
8. Analyze and predict changes in the three key macroeconomic variables
using the AD/AS model in both the short and long run
9. Identify the existence of and calculate the magnitude of the two types of
output gaps
10. Identify the correct LR macroeconomic equilibrium adjustment process
Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
Keynesian Stabilization
Fiscal Policy and the Fiscal Multiplier
The Case for and Against Active Stabilization
Deficits, Debt, and Automatic Stabilizers
Equilibrium in the Money Market
Interest Rate Targeting by the Federal Reserve
By the end of this chapter students will be able to:
1. Explain the aim of active Keynesian macroeconomic stabilization
2. Identify the appropriate fiscal response to the existence of a SR output gap
3. Calculate the effect of a change in government spending on GDP using the
fiscal multiplier
4. Identify the effect of a change in taxation on GDP in the short run
5. Identify arguments for and against active stabilization
6. Calculate government deficits and debt
7. Identify the effect automatic stabilizers have on SR economic fluctuations
8. Identify the equilibrium interest rate in the money market
9. Forecast changes in the equilibrium interest rate as a result of changes in
the supply of money
10. Specify the appropriate change in the money supply needed to address
various output gaps
Chapter 16: The Monetary System
The Meaning and Role of Money
The Federal Reserve System
Banks and the Money Supply
Federal Reserve Policy Tools
Leaning Against the Wind
By the end of this chapter students will be able to:
1. Identify the three necessary functions of money
2. Identify the two types of money
3. Identify the role and structure of the Federal Reserve
4. Identify the assets and liabilities in a bank’s balance sheet
5. Identify the rationale for requiring banks to hold reserves and the dangers
presented by bank runs
6. Calculate the money multiplier using the required reserve ratio
7. Calculate the resulting expansion in the money supply as a consequence of
some initial injection of capital
8. Identify the role of fractional reserve banking in the modern economy
9. Identify the three policy tools available to the Federal Reserve
10. Identify the appropriate open market operations required
REQUIRED COURSE MEASURES/ARTIFACTS:
A. Aplia Problem Sets
Students are required to complete an online Aplia problem set for homework after
every class (with the possible exception of directly after an exam is administered).
These problem sets allow three attempts per question and are scored based on the
average of all attempts.
B. Exams
There will be a total of five exams (including the final). With the exception of the
final, exams will not be comprehensive but only assess material covered since the
last exam.
C. Reading/Video Questions, Worksheets, and Discussion Board Posts
i. Reading and video assignments will be issued after every class. It will be up
to the discretion of the instructor whether to require a written response along
with these reading/video assignments.
ii. On campus students will collaboratively or individually complete in-class
worksheets which may or may not be collected for credit at the instructor’s
discretion. Online students are expected to complete the worksheets and assess
their understanding of the material based on the answer key provided
iii. Discussion board posts may be required at the discretion of the instructor.
EVALUATION OF REQUIRED COURSE MEASURES/ARTIFACTS
In this section of the instructional package, identify how the students’ performance is assessed
and the weight associated with the various measures/artifacts.
EVALUATION
Aplia Homework Problem Sets
Exams (5 total, equally weighted)
Reading/Video Questions,
and Discussion Board posts
Total
On-Campus
Online
40%
60%
40%
50%
Included in
Aplia Problem
Set Component
10%
100%
100%
GRADING SYSTEM:
90% and above
80% to < 90%
70% to < 80%
60% to < 70%
Below 60%
A
B
C
D
F
Grades earned in courses impact academic progression and financial aid status. Before
withdrawing from a course, be sure to talk with your instructor and financial aid counselor
about the implications of that course of action. Ds, Fs, Ws, WFs and Is also negatively
impact academic progression and financial aid status.
The Add/Drop Period is the first 5 days of the semester for full term classes. Add/Drop
periods are shorter for accelerated format courses. The following week of the semester is
Financial Aid Attendance Verification period. You must attend at least one meeting of all of
your classes during that period. If you do not, you will be dropped from the course(s) and
your Financial Aid will be reduced accordingly.
The Student Success and Tutoring Center (SSTC)
The SSTC offers to all students the following free resources:
1. Academic coaches for most subject areas, Writing Center Support, and college success skills
2. On-line student success and academic support resources
a. 24/7 online academic tutoring assistance (access in WaveNet)
b. 24/7 Online Resource Center (ORC)
c. Campus2Campus Virtual Appointments
d. Tips and tricks for college life, studying, and learning
(Facebook: hgtcsstc)
3. Other student resources and academic support
a. Resource guides to improve college success skills
b. Science models & other supplemental tools and textbooks
c. Workshops on college success skills and citation styles
d. Study Skills, Test Anxiety, Time Management, etc.
e. APA, MLA, and Preventing Plagiarism
f. Check the EVENTS calendar in WaveNet for more information!
Visit the SSTC website: www.hgtc.edu/sstc and visit the student services tab in your WaveNet account to
schedule appointments using TutorTrac. For more information, call: SSTC Conway, 349-7872; SSTC
Grand Strand, 477-2113; and SSTC Georgetown, 520-1455. Room locations and Live Chat is available on
the SSTC website.
Student Information Center: WaveNet Central (WNC)
WNC offers to all students the following free resources:
1. Getting around HGTC: General information and guidance for enrollment!
2. Use the Online Resource Center (ORC) for COMPASS support, technology education, and
online tools
3. Drop-in technology support or scheduled training in the Center or in class
4. In-person workshops and online tutorials are available for:
1. D2L & WaveNet,
2. Microsoft Office Word, PowerPoint and Excel,
3. Basic Computer Skills,
4. Budgeting your Money, and more.
5. Check the EVENTS calendar or the WNC Online Resource
Center for more information!
5. Additional services such as reviewing Degree Works, scheduling
tutoring, or scheduling testing center appointments, scanning and
uploading documents, etc.
Visit the WNC website: www.hgtc.edu/wavenetcentral. Live Chat and Center locations are posted on
the website. Or please call one of the following locations: WNC Conway, 349-5182; WNC Grand Strand,
477-2076; and WNC Georgetown, 520-1473. View tips and tricks for college life, personal development
and technology learning on their Facebook page (Facebook: hgtcwnc).