ECONOMICS 191-02

Introduction to Macroeconomics

M W 3:30-4:45 p.m.

Spring Term 2007

 

Instructor:      Joy L. Joyce

 

E-Mail            :           jjoyce@dom.edu or joy-joyce@comcast.net

 

Office Hours M and W before or after class and by appointment.     

 

 

Required Texts:

 

Recommended Resource

 

GENERAL COURSE DESCRIPTION:

 

This course begins with an overview of the foundations of economics including scarcity, production possibilities, supply and demand, comparative advantage and the economic perspective or way of thinking.  The tools for measuring the performance of the economy as a whole will be utilized in order to examine the current economy.  Macroeconomic models will be used to examine economic performance and to evaluate the application of fiscal and monetary policy. Conditions promoting long run economic growth will be investigated.  This course is designed to blend the study of basic economic concepts and theory with analysis of current economic forces.  There is no prerequisite for this course.

 

 

EXPECTATIONS AND PROCEDURES:

 

1.      Students will attend class on a regular basis. 

2.      Students who miss class are responsible for material covered during that class period.

3.      Students will use the daily syllabus in order to complete the assigned reading prior to the course meeting.

4.      Discussion of the activities with solutions will usually take place during class.

5.      Students will bring both text and activities book to class.

6.      Log assignments are due on the deadline date in the daily syllabus.  Late log assignments will earn less credit.

7.      Students will participate in class on a regular basis.  Preparation is essential for adequate participation.  Be prepared to present your log.

8.      Students missing an exam must contact the instructor prior to the exam.  Any absence not prearranged with the instructor will result in a grade of zero.

9.      Students scoring below a C on an exam should meet with the instructor or use a tutor.

10.  Students are expected to demonstrate integrity, maturity, and mutual respect.  The following are inappropriate behaviors:  late arrival or early departure from class, inattentiveness, lack of preparation, actions disturbing or distracting to others.

11.  Exams will consist of multiple choice and short answer questions.

12.  Students are expected to be academically honest at all times.

 

 

GENERAL COURSE OUTLINE:  See the daily syllabus for information about each class session.  Please note that changes may be announced regarding the daily syllabus throughout the semester.

 

UNIT I

An Introduction to Economics and the Economy

McConnell – chapters 1-5

 

UNIT II

Macroeconomic Measurement and Models

McConnell – chapters 6-10

 

UNIT III

Macroeconomic Policies, Debates, and Long-Run Perspectives

McConnell – chapters 11-17

 

 

Course Objectives

 

1.  Understanding the basic way in which a market economy allocates resources and distributes income.

2.  Reasons for and effects of government intervention in a market economy.

3.  The roles of government and business in a “mixed” economy.

4.  Measure and interpretations of macroeconomic activity.

5.  The basic determinants of the level of macroeconomic activity.

6.  The nature and impact of the banking system and the role and impact of the central bank.

7.  The theories of monetary and fiscal policy.

8.  The practical problems of macroeconomic policy.

9.  The determinants of economic growth and supply-side factors.

10. The nature and impact of international trade.

11.The ability to think logically and analytically about macroeconomic issues, using the framework of macroeconomic analysis.

 

 

 

 

 

 

LOGS:

 

Each of the eight logs should be completed the same way. 

 

Find an article using the financial press or a website link for this course that deals with a topic presented in the text from the relevant chapters.  Print the article and its source.  Highlight key information in the article and attach it to your typed log.  Note that the DU Library subscribes to ProQuest and has many resources that can be searched on line.

 

Write your log as follows:

 

I.  Title of article:

II.  Macroeconomic Topic(s):

III.  Three terms used in the article that relate to macroeconomics – give both the term and the correct definition.

IV.  Brief summary of data or main idea of the article.

V. Your analysis of the relationship between the article and topics under study in class or discussed in the text.

 

NOTE:  Each log is intended to be an informal way for you to use and apply economic thinking in the real world.  It is supposed to be your connection between theory as presented in the text and the current economic environment.  The log is intended to be a concise sample of current events with your added analysis.  Keep your log brief by limiting it to one typed page or two at the very most.  Include the use of a macroeconomic model if it enhances your analysis.

 

For example, if the topic of study is fiscal policy, you may submit a log describing tax or spending changes being considered by Congress.  If the topic is monetary policy, you may submit a log on a speech given by a Federal Reserve Governor on the state of the economy.  If the topic of study is GDP, you may submit a log with current figures and insight into GDP performance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMPORTANT DATES:

 

1-15          First class meeting

1-17          Log #1 due on any topic related to chapters 1-3

1-22          Log #2 due on any topic related to chapters 4

1-29     Log #3 due on any topic related to chapter 5

1-31     Unit 1 Exam on chapters 1-5

2-14     Log #4 due on any topic related to chapter 6-7

2-21     Log #5 due on any topic related to chapter 10

3-14     Unit II Exam on chapters 6-10

3-26     Log #6 due on any topic related to chapter 11  

4-9       Log #7 due on any topic related to chapters 12-14

4-18     Unit III Exam on chapters 11-15 and 17

4-23     Log #8 due on any topic related to chapter 16

5-2       Final Exam – Comprehensive on chapters 1-17             

 

BASIS FOR FINAL GRADE

 

20% Unit I Exam

20% Unit II Exam

20% Unit III Exam

20% Logs/Participation

20% Comprehensive Final Exam

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spring 2007 ECON 191 - 02 (T Th) Course Schedule and Assignments

Principles of Macroeconomics - Joy Joyce

 

DATE

 

CH

TOPICS

ACTV BOOK

LOG DUE

1-15-07

1,2

Economic Perspective, Production Possibilities Model, Circular Flow Model

9, 1

 

1-17-07

3

Demand, Supply, Prices, Floors, Ceilings

4, 6, 7

 #1

1-22-07

4

Market System, Invisible Hand, Private Sector, Public Sector, Circular Flow, Government Finance

10

 #2

1-24-07

5

Specialization and Comparative Advantage,

Foreign Exchange, Gov’t Actions, and Trade

50, 53 B

54

 

1-29-07

 

Study Guide and practice exam in Actv Book

Unit I

 #3

1-31-07

 

UNIT 1 EXAM

 

 

2-5-07

6

GDP Counting, Expenditures Method, Income Method

12

 

2-7-07

6

Nominal vs Real GDP, Shortcomings of GDP

11C

 

2-12-07

7

Growth, Business Cycles, Unemployment

11A, 16, 17

 

2-14-07

7

Inflation, Achieving Economic Goals

11B, 13, 15, 18

 #4

2-19-07

10

Aggregate Demand and Aggregate Supply

23, 24

 

2-21-07

10

AD AS equilibrium

25, 27

 #5          

2-26-07

10

Applications of AD and AS

27

 

2-28-07

8

Income-Consumption Relationship, Investment Demand and the Multiplier Effect

19, 20C, 21, 22

 

3-12-07

9

Aggregate Expenditures Model/Ch. 11 Appendix

26

 

3-14-07

 

UNIT II EXAM

 

 

3-19-07

11

Fiscal Policy, Built-in Stability

30, 31

 

3-21-04

11

Fiscal Policy Problems and Open Economy Effects

32, 44

 

3-26-07

11

Deficits, Surpluses, and the Public Debt

 

 #6

3-28-07

12

Functions of Money, Money Demand, Money Market, and the Federal Reserve System

34, 35

 

4-2-07

13

Money Creation and the Banking System

37, 39

 

4-4-07

14

The Tools of Monetary Policy

p202-203, 40, 41, 42

 

4-9-07

14

Monetary Policy, Fed Funds Rate, GDP, and PL

44, 45

 #7

4-11-07

15

Long-Run Aggregate Supply and the Phillips Curve

46

 

4-16-07

17

Macro Stability: Disputes and Views

28, 48

 

4-18-07

 

UNIT III EXAM

 

 

4-23-07

17

Economic Growth

47

 #8

4-25-07

 

Wrap up, review problems

 

 

5-2-07

 

COMPREHENSIVE FINAL EXAM