Download FALL Semester 2010

PRINCIPLES OF MACROECONOMICS
ECON 2251 TOWA
ECON 2251 TUWA
FALL Semester 2010
Instructor:
Dr. Jack J. Kirkland
Course Prerequisites:
Office Hours
None
7:00 am to 8:515 am TuTh
11:30 am to 12:45 TuTh
4:00 pm to 5:00 pm TuTh
8:00 am to 11:30 am W
Or by appointment as needed
Office Location:
017B McCartha Hall (in the basement)
Office Telephone:
334-670-3579
334-670-3459 Secretary
334-670-3599 FAX
[email protected]
Email:
Time of Class:
Econ 2251TOWA 8:30 to 9:45 am
Econ 2251TUWA 2:30 to 3:45 pm
Class Location:
Econ 2251 TOWA GAB 302
Econ 2251 TUWA GAB 302
Course Description:
Macroeconomic Theory of the National Economy with an Emphasis
on Income, Employment, Banking, and Public Policy.
Student Learning
Objectives:
Upon completion of the course, the student should:
-Contrast the market system with alternative methods.
-Explain how the price system allocates economic resources.
-Identify the different sectors in the economy and
explain their respective roles;
-Use national income accounting to measure the overall
performance of the economy;
-Outline the relationship between spending and
output, employment, and inflation;
-Explain changes in the equilibrium price level, output
level, and level of unemployment using the aggregate demand
(AD)and aggregate supply (AS) framework;
-Assess the impact of fiscal policy on an economy;
-Explain money creation and control of the money
creation process by the Federal Reserve System;
-Assess the impact of monetary policy on an economy;
-Explain and assess the macroeconomic impact of international
activity on an open economy.
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 upper-level business courses. A choice of ECO 2251
and 2252 is required for the ASB Business Administration minor.
McConnell, Brue, and Flynn. Macroeconomics,18 th ed., 2010,
McGraw-Hill (custome looseleaf text package including Connect
Purpose:
Text(s):
1
homework manager and an embedded ebook)
Exams:
Topics Covered on the
Final Exam
Four 50 point exams, 100 points of Homework assignments, and a
100 point comprehensive Final will be given in this course. The
exams will be multiple choice exams. Scantrons are required for
each exam except for the Final Exam.
You may not use any electronic device (including calculators), a
dictionary nor a cell phone.You are permitted to have only your
scantron and a number 2 pencil on your desk when taking the
exams in class.
All students who take this course must take a timed, proctored,
comprehensive, closed-book/notes formative exam which will be
taken in Blackboard during the final examination period. The final
exam is worth 25% of the points in this course and the exam results
may not be scaled. The exam will be administered online in
Blackboard. All students 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 learning objectives listed in the
courses covered in this class. See below for a detailed list of
subtopics included.
The test consists of questions at random from pools on each of the
learning objectives listed in each chapter covered in the course.
Areas included are:
1.
Contrast the market system with alternative methods
 understand the nature of the economizing problem,
as well as how scarcity and how opportunity cost
influence our choices
 distinguish between positive and normative
economics
 understand the differences between a market and a
command system, as well as the shortcomings of
each
 know the fundamental questions that the market
system answers
2.
Explain how the price system allocates economic resources
 define the concept of the invisible hand
 be able to show a growing economy using a
production possibilities frontier (PPF)
 understand the attainability and efficiency of
resource use with regard to a PPF diagram
 understand how market equilibrium is determined
and the rationing function of prices
 know the determinants of demand and supply and
how changes in non-price determinants shift the
curves and change equilibrium price and quantity
3.
Identify the different sectors in the economy and explain
their respective role
 understand the circular flow model
 identify the major sectors of the economy
 understand the economic functions of government
 know the major categories of federal, state, and
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local expenditures, as well as how these
expenditures are financed
4.
Use national income accounting to measure the overall
performance of the economy
 define nominal GDP and real GDP, and be able to
calculate real GDP using a price index
 know what is counted in GDP and what is not
counted, as well as the shortcomings of this
measure
 compare the expenditure and income approaches
for measuring GDP
 be able to determine GDP using the expenditure or
the income approach
 understand the basic components of GDP
5.
Outline the relationships among spending, output,
employment, and inflation
 understand how economic growth is measured and
the major causes of economic growth
 define a business cycle and be able to identify the
stages
 know how the unemployment rate is measured as
well as the types of unemployment and its
consequences
 know how inflation is measured as well as its
causes and impacts on the economy
 understand the difference between cost-push and
demand-pull inflation, and how government
policymakers can correct for each
 understand the relationship between inflation and
unemployment using a Phillips curve approach
6.
Explain changes in the equilibrium price level, output level,
and level of unemployment using the aggregate demand
(AD) and aggregate supply (AS) framework
 understand the determinants of consumption and
investment spending and how each impacts the
level of spending
 know why the AD curve slopes downward
 understand the determination of AD and AS
curves, as well as shift and change factors
 understand how equilibrium is determined in an
AD/AS framework and what changes in each
curve represent in the macroeconomic sense
 know what the multiplier effect is and how it
impacts aggregate demand
7.
Assess the impact of fiscal policy on an economy
 differentiate between expansionary and
contractionary policy, as well as when they are
appropriate to use in the business cycle
 understand how fiscal policy impacts the economy
using an AD/AS framework
 know what is meant by automatic stabilizers and
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how they impact tax revenues
understand the problems associated with
implementing fiscal policy, as well as what the
crowding-out effect is
know the difference between the federal budget
deficit and the debt
understand the difference between cyclical and
structural budget deficits and surpluses
understand the major concerns about high levels of
government debt
8.
Explain money creation and control of the money creation
process by the Federal Reserve System
 understand the functions of money in an economy
 know the primary components of the money
supply, including M1 and M2
 understand what influences the value of money
 know the basic functions that the Federal Reserve
System provides in the US economy, as well as
characteristics such as independence
 know what fractional reserve banking is and how
money is created or destroyed
 explain how multiple deposit expansion works
 be able to calculate and use the simple money
multiplier
9.
Assess the impact of monetary policy on an economy
 know the components of the demand for money
 understand the three basic tools of monetary policy
and how they impact the money supply
 know what the Federal Funds rate is and how the
Federal Reserve influences it
 understand the difference between expansionary
and contractionary monetary policy and when each
would be used
 know how monetary policy influences the level of
GDP and the price level in an AD/AS framework
10. Explain and assess the macroeconomic impact of
international activity on an open economy
 understand how exchange rates are determined
 know the basic components of the balance of
payments
 know the difference between fixed and flexible
exchange rates
Grading Methods:
Letter grade
A
B
C
D
F
Percentage of Total Points
90% + or 360+ points
80 to 89% or 320 to 359 points
70 to 79% or 280 to 319 points
60 to 69% or 240 to 279 points
Less than 60% or 240 points
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TEST POLICY:
No calculators or electronic dictionaries or any other electronic
device may be used. Make-up exams will be given only for
documented (on letterhead), approved absences. See
ATTENDANCE POLICY. Make up exams are administered only
to students who have received approval from the professor prior to
the test date. The make-up exam must be taken within three class
days of the student’s next appearance in class. There are no
makeup exams for more than one approved missed exam. NO
EXCEPTIONS!!!!! A grade of zero will be assigned for an exam
missed due to an unexcused absence.
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Class Procedure and
Requirements:
There are NO social promotions! You must earn a passing grade
by meeting course objectives. Faithful attendance, a pure heart,
noble intentions, curly hair, blue eyes, etc. -- without genuine
achievement -- will not enable you to pass the course. Examinations
will be the criteria for grades.
Class participation and discussion is strongly encouraged.
The student will be expected to attend scheduled class meetings
and complete reading assignments prior to class.
Exam grades will be posted to blackboard. If a student wishes
to see their exam, they can come by my office during my regular
office hours within 3 class days after taking the exam and I will
go over the exam with them. You may not review your exams
before the final.
You must have your cell phone set to vibrate or turned off in
the class room. Cell phones must not ring during the class. You
may not answer your cell phone in the class and use (speaking or
texting) your cell phone in class. Class interruptions caused by
cell phones are not allowed! If your cell phone rings during class,
you will be asked to leave the class. For an emergency situation,
a student will be allowed to answer their phone but it must be set
to silent or vibrate. The student must contact the professor
before class and inform him of the emergency situation. Upon
the instructor’s approval of the emergency situation, the student
may exit the class to answer the call. See p. 24 in the current
Oracle.
Attendance is mandatory!
Students are expected to be seated in the classroom when the
class begins (see time of class above).
There will be no talking to other students in class.
HOMEWORK
Upon the competition of each chapter, homework will be
assigned in Connect. Students will have a predetermined time
frame to complete the homework assignment (3 or 4 days). It is
the student’s responsibility to be aware of when each assignment
is due and complete the work by the due date. If you do not
complete the assignment by the due date you will receive a zero
for that homework assignment.
COURSE CONTENT:
Chapter 1.
Chapter 2.
Chapter 3.
Chapter 4.
Limits, Alternatives, and Choices.
The Market System and the Circular Flow..
Demand, Supply, and Market Equilibrium.
The U.S. Economy: Private and Public Sectors..
Exam #1--Chapters 1, 2, 3, and 4--50 Points
Chapter 5.
Chapter 6.
Chapter 7.
Chapter 8.
An Introduction to Macroeconomics.
Measuring Domestic Output and National Income
Economic Growth.
Business Cycles, Unemployment, and Inflation.
Exam #2. Chapters 5, 6, 7, and 8—50 Points
Chapter 9.
Chapter 10.
Chapter 11.
Chapter 12.
Basic Macroeconomic Relationships.
The Aggregate Expenditures Model.
Aggregate Demand and Aggregate Supply
Fiscal Policy, Deficits, and Debt.
Exam #3. Chapters 9, 10, 11, and 12--50 Points
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Chapter 13.
Chapter 14.
Chapter 15.
Chapter 16.
Chapter 17.
Money and Banking.
Money Creation.
Interest Rates and Monetary Policy.
Expanding the Analysis of Aggregate Supply.
The Balance of Payments, Exchange Rates, and Trade
Deficits
Exam #4. Chapters 13, 14, 15, 16, and 17--50 Points
FINAL EXAM—Chapters 1 through 17--100 Points
CLASSROOM ADMINISTRATION
Students are expected to:
1. Punctually attend all scheduled classes.
2. Be responsible for all instructions and assignments given in
class as well as for the supporting textbook content.
3. Read the textbook material before the lecture covering that
material. This leads to a better understanding of the lecture as
well as the opportunity to ask questions about material(s) in the
text that were unclear or that the student did not understand.
4. Students can come to my office and I will go over their exam with
them. However, you must do this within 3 class days of the
scheduled exam. The students will not be allowed to review their
old tests before the final exam.
5. Homework assignments are given via Connect and must be
completed by the due date. Failure to complete a homework
assignment by the due date will result in a score of zero for that
homework.
Handouts:
Important Dates
Holidays
Handouts will be used in this class. They are available on
blackboard. Each student is responsible for getting all handouts from
my web page and must have them available at the proper time for
use in class. I will not provide the handout materials for you!!!!!
First day of class:
August 11
Deadline for adding course
August 16
Last day to drop a course
without financial penalty
August 16
Last day to drop a course without
Academic penalty
October 15
Last day to withdraw without
Academic penalty
October 15
Veterans Day
Fall/Thanksgiving Break
Classes end
Dead Day
November 11
November 22-28
November 30
December 1
Econ 2251 TOWA Friday Dec 3 8:00 to 10:00 am McCartha
Computer lab
Econ 2251 TUWA Friday Dec 3 2:00 to 4:00 pm McCartha
Computer lab
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Additional Services:
Attendance Policy:
AMERICANS WITH DISABILITIES ACT: Any student whose
disabilities fall within ADA must inform the instructor at the
beginning of the term of any special needs or equipment necessary to
accomplish the requirements for this course.
Students who have or may be dealing with a disability or learning
difficulty should speak with the instructor, contact the Office of
Adaptive Needs Program (Adams Center 215), or call 6703220/3221. Various accommodations are available through the
Adaptive Needs Program. The faculty in the School of Business
makes every effort to accommodate unique and special needs of
students with respect to speech, hearing, vision, seating, or other
possible disabling conditions. Please notify the instructor as soon as
possible of requested accommodations or ways to help
1. Class Roll: Class roll will be taken at the beginning of the class
session. Students who arrive after class roll is taken will be
marked absent.
2. Attendance is mandatory. Role will be taken each day.
If a student misses a class, it is his/her responsibility to
obtain all information and materials presented
(including materials covered, handouts, skills learned,
and homework assignments) during his/her absence.
I do not repeat lectures nor perform the tutoring function for
students who are absent. Each absence will make the successful
completion of this course more difficult, since economics
courses are cumulative in nature and days missed from class are
lost knowledge. Exams will include not only the material from
the assigned chapters in the text, but also from any other
materials covered in class lectures.
3.
Incomplete Work Policy:
Excused absences: Excused absences have the following
characteristics:
a. Professor was informed prior to the absence.
b. Professor determines that the absence is excused.
c. Absence is of the following type:
1. Participation in a documented official university function
that does not permit the student’s class attendance (e.g.,
participation in athletic events, field trips, etc.)
2. Severe illness (this does not include scheduled medical
appointments nor driving someone else to doctor), a
hospital stay, or a doctor's excuse saying that it is
impossible for student to attend class(es). A form from
the Student Health Center does not constitute a valid
excuse. You must have a letter on letterhead from a
doctor explaining your illness and why it was impossible
for you to attend your classes on the day of the exam.
3. Death or Serious Illness of immediate family member
(grandparent, parent, sibling, or child)
4. Appearance in court
5. Personal situations that are approved by the professor in
advance of the time the student is to be absent.
d. Written documentation (on letterhead) must be provided.
Any incomplete work at the end of the term will not be accepted
unless the student can provide acceptable and clear documentation
prior to grades being submitted to the Registrar.
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Cheating Policy:
See current Oracle p. 48. . Plagiarism is the act of stealing and
passing off (the ideas or words of another) as one’s own or to
commit literary theft: present as new and original an idea or product
derived from an existing source (Webster’s New Collegiate
Dictionary). Plagiarism will cause a student to get a course grade of
“F”. According to the current Oracle p. 48 one definition of
misconduct is: “Dishonesty, such as cheating, plagiarism...”. .Where
the work affects or might affect a student’s grade, credit, or status in
the university, a student represents to be his or her own any work
which is not the product of his or her own study and efforts”.
The penalty for such misconduct may be :“A student’s grade in the
course or on the examination affected by the misconduct may be
reduced to any extent, including a reduction to failure.” A student
may be suspended from the university for a specific or an indefinite
period.
Self-Study Web Sites
The following web addresses are for sites that will give additional
help in studying the course material:
http://www.merlot.org/Home.po?discipline=Business
http://www.ny.frb.org/pihome/educator/fomcsim.html
http://www.frbsf.org/publications/federalreserve/fedinbrief/index.
html
http://www.digitaleconomist.com/macro_data_tutorial.html
http://hadm.sph.sc.edu/Courses/Econ/SD/SD.html
http://hadm.sph.sc.edu/Courses/Econ/Demand/Demand.html
http://syllabus.syr.edu/cid/graph/TOCbook.html
http://www.econedlink.org/lessons/index.cfm?lesson=EM165&pa
ge=teacher
Data Sources
The following links provide current economic data:
http://www.federalreserve.gov/releases/h6/hist/
http://www.bea.doc.gov/bea/dn/nipaweb/TableViewFixed.asp?Sel
ectedTable=3&FirstYear=2000&LastYear=2001&Freq=Qtr
http://www.census.gov/cgi-bin/briefroom/BriefRm
http://www.bls.gov/home.htm
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