THE GEORGE WASHINGTON UNIVERSITY Department of Economics Spring 2018

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1 Page 1 of 7 THE GEORGE WASHINGTON UNIVERSITY Department of Economics Spring 2018 ECON 2102_10 - Intermediate Macroeconomic Theory (33553) Location and Time: MON 251 MW 08:00AM - 09:15AM Welcome to Macroeconomics! This course will focus on understanding the movements of GDP, unemployment and inflation in the short run, the role of expectations in economic decision and policy making, and the determinants of economic growth. This will be accomplished through constructing simple macroeconomic models which attempt to explain real world phenomenon. The models will become more complex and realistic as we incorporate dynamics from the short-run to long-run, financial markets, uncertainty, expectations, and open economy issues. Data, primarily from the United States, will be used to illustrate simple relationships. We will use the data live in-class and you will work with it on problem sets. Long run relationships, policy issues, and the interdependence of the domestic economy with the rest of the world will be discussed. You are about to study an exciting subject that provides many useful insights into the way the world works and current events in the United States and other countries. I am confident that what you learn in this class will assist you for the rest of your lives. This is a stimulating time to learn macroeconomics. Globally and in the U.S. economic growth appears to be rebounding, but sluggish and uneven across countries and regions. There is uncertainty about the future. Federal government fiscal and tax policies and deficits are being debated in the Congress, Executive Branch, and Nationwide. The President is considering changing all international trade agreements and pushing for an America First policy. Central bank, like the Federal Reserve Board of Governors (FED), are attempting raise interest rates to more normal levels reverse Quantitative Easing (QE). Higher interest rates could disrupt economic growth and increase unemployment. Global economic growth appears to be rebounding. International trade while growing is being questioned and previous agreements are disputed over. The price of oil has collapsed by 50% in the last year. The center of global economic activity is moving to Asia and other emerging economies. Globalization, international trade, and employment are critical issues. Events and structural changes are occurring in China that affect both domestic economic growth and international economic activity. We will not use Blackboard in the class. We will use the Pearson MyEconLab online system for the textbook Macroeconomics, 7/E by Blanchard and Johnson.

2 Page 2 of 7 Prerequisites: There is one formal perquisite for this course; you must have taken intermediate microeconomics. The GWU equivalent is ECON Also, you must meet the calculus requirement for intermediate microeconomics. We will use some calculus in the course. Organization of the Syllabus: 1) Information on learning outcomes, 2) Academic integrity, 3) Disability support services, 4) protocol, 5) provide the DRAFT course outline and organization, 6) explain the grading, 7) provide recommendations and 8) textbook and instructions for getting started on the course web-site and registering. Learning Outcomes: 1. Macroeconomics studies economic activity domestically and internationally. 2. Students will learn about the four main actors and models. The actors are consumers, firms, government, and foreigners. 3. Students will learn about the terminology, the data and analytical tools for discussing macroeconomic issues. 4. Students will learn how to analyze issues using models to understand historical events, the current situation, and hypotheses about the short-run, medium-run, and long-run regarding economic growth, unemployment, inflation, interest rates, foreign exchange rates, fiscal policy, monetary policy, and international trade. 5. Students will learn the basics of data analysis with empirical data through in-class examples and problem sets. 6. The students and instructor will experiment with in-class problem solving groups. This is the first time the instructor has attempted the experiment. 7. A discussion board will be used for students to apply what they learn to real world events. Academic Integrity: All graded work must be completed in accordance with The George Washington University Code of Academic Conduct. Cheating on problem sets and tests is not allowed. Plagiarism in any form is a violation of this Code. Examples of plagiarism include: buying or borrowing a paper; copying a paper entirely or in part from any source; summarizing a source without adequate citation; using thoughts (including wording) belonging to someone else without citation, etc.

3 Page 3 of 7 It is also a violation of the Code if the research paper has been used in its entirety in another class. (A previous paper of yours may be the basis for further research, but you must discuss this with me in advance). A violation of the Code results in a grade of F, notification of the Office of Academic Integrity, and a possible hearing before the Academic Integrity Council. All students must read the Code of Conduct. check the web-site at NOTE: EVERY STUDENT MUST SEND ME AN AFTER REVIEWING THE ACADEMIC CODE OF CONDUCT. The subject heading must be ECON 2102 Academic Integrity. In the body of the write I, (yourname), have read and will abide The George Washington University Code of Academic Conduct. Provide your name and student number afterwards. If you have any questions, feel free to contact me. Disability Support Services Any student who feels s/he may need an accommodation based on the impact of a disability should contact Disability Support Services, Marvin Center 242, , to have the disability documented and reasonable accommodations coordinated. Please do so immediately. You can access the website at Protocols (Essential) Class, please put follow the Subject Heading and File Attachment protocols. I receive too many s and delete many of them. I place a priority on answering from current students. If you do not put ECON2102PM in the subject, I cannot guarantee an answer soon or at all. Subject Heading: ECON2102 AM File Attachments: E102AM_PS#_lastname. (pdf, docx, xlsx) Sending files without the identifiers and your name present an administrative nightmare. Attachments not following the protocol will not be read. I will try to ask you to resend the material. Note: there are only three file types accepted. Picture files of any format will not be accepted. If you do not have a pdf scanner, there a free apps for all cell phones. Go to your app store and download one. You will find it useful far beyond this class for maintaining your records. Textbook and Getting Started Textbook: Macroeconomics, 7/E by Blanchard and Johnson, ISBN-10: ISBN-13: I do not recommend purchasing the book, but this is an option. See instructions below for registering for the textbook and learning materials on MyEconLab. We will use MyEconLab for the course instead of Blackboard.

4 Page 4 of 7 Organization and Grading for the Course Please see the table below; it provides the order of chapter material and assignments with tentative dates. Homework (on-line) will be due on the required date and time (typically 11:45pm). Answers will be provided after the due date and time. Problem Sets will be due in class or submitted by using the protocols. 1. Use the on-line course interactive tools and practice problems for working with graphs and mathematical review. 2. If you feel rusty or just want a review, check the appendix in chapter 2 of the textbook. 3. If you are not comfortable with graphs, consider getting out an old math book and reviewing those sections. Also, work the practice material on MyEconLab. Grading: Homework 45 points Problem Sets 45 points Final Exam 70 points Total Points points There will be one graded Homework for each chapter 2-9 and (18 total). The 15 highest scores of 18 will count for your grade. Each Homework is worth 3 points; Homework will count for 45 (15x3) total points in your final grade. There are due dates for each Homework. However, you may start them any time you want. I have let you begin them early if you have been reading ahead and want to take them sooner. Answer Keys and Scores will become available after Homework and Unit Tests are due. You can access them from the web-site There will be 4 Problem Sets; they will be worth 15 points each and 45 toward your final grade. They will not be accepted late. You will receive problem sets approximately one week in advance. A score of zero will be assigned to Problem Sets not turned in on time. Your 3 highest scores on problem sets will count for 45 (3x15) total points toward the final grade. If you expect to miss class, it as a pdf file or fax it to (202) See protocols. The Final Exam is worth 70 points. You will receive a set of study questions one week before the Final Exam. Your total points will be converted to a 100-point scale weighted by the total points for each type. I expect to grade on a curve unless the score distribution falls into the standard % categories. The average or median score is typically a C of C+. Contributions to the Class Discussion Boards are worth points on top of the total 160 points. You will receive more information about the Discussion Boards after the 2 nd week of class.

5 Page 5 of 7 DRAFT COURSE SCHEDULE (ambitious) Description Chapter Reading Material and Assignments Getting Started with MyEconLab Ch 1: Introduction - Required Practice Session - Required Practice Session (Tentative) Quiz Date Ch. 2: A Tour of the Book 1/24 Ch. 3: The Goods Market 1/31 Ch. 4: Financial Markets I 2/7 Ch. 5: Goods and Financial Markets: The IS LM Model 2/14 Problem Set 1 Ch. 6: Financial Markets II Ch. 7: The Labor Market Ch. 8: The Phillips Curve, the Natural Rate of UE, and Inflation Ch. 9: From the Short to the Medium Run: The IS-LM-PC Model Problem Set 2 Ch. 14: Financial Markets and Expectations Ch. 15: Expectations, Consumption, and Investment Ch. 16: Expectations, Output, and Policy Problem Set 3 Ch. 17: Openness in Goods and Financial Markets Ch. 18: The Goods Market in an Open Economy Ch. 19: Output, the Interest Rate, and the Exchange Rate Ch. 20: Exchange Rate Regimes Problem Set 4 Ch. 21: Should Policy Makers Be Restrained? Ch. 22: Fiscal Policy: A Summing Up Ch. 23: Monetary Policy: A Summing Up Final Test

6 Page 6 of 7 Getting Started Register on-line To register for ECON Intermediate Macroeconomic Theory: 1. Go to 2. Under Register, select Student. 3. Confirm you have the information needed, then select OK! Register now. 4. Enter your instructor s course ID: joutz48266, and Continue. 5. Enter your existing Pearson account username and password to Sign In. You have an account if you have ever used a Pearson MyLab & Mastering product, such as MyMathLab, MyITLab, MySpanishLab, Mastering Biology or Mastering Physics. If you don t have an account, select Create and complete the required fields. 6. Select an access option. Enter the access code that came with your textbook or was purchased separately from the bookstore. Buy access using a credit card or PayPal account. If available, get temporary access by selecting the link near the bottom of the page. 7. From the You're Done! page, select Go to My Courses. 8. On the My Courses page, select the course name ECON Intermediate Macroeconomic Theory to start your work. To sign in later: 1. Go to 2. Select Sign In. 3. Enter your Pearson account username and password, and Sign In. 4. Select the course name ECON Intermediate Macroeconomic Theory to start your work. To upgrade temporary access to full access: 1. Go to 2. Select Sign In. 3. Enter your Pearson account username and password, and Sign In. 4. Select Upgrade access for ECON Intermediate Macroeconomic Theory. 5. Enter an access code or buy access with a credit card or PayPal account. Free Trial: Your course enrollment includes a free trial period of up to two weeks. After the free trial ends you will be required to pay for access.

7 Page 7 of 7 Register on-line: The paragraph below is critical information. Please note: At the end of the free trial period, your course access will be suspended until your payment has been made. All your scores and course activity will be saved and will be available to you after you pay for access. If your payment is not made in time, your course access is suspended and it can take several days to get you re-admitted. This is not done through GWU. You will get behind quickly and it will be difficult to catch up. Discussion Board - Participation OPTIONAL but your contributions can be worth points toward your final grade. I hope you follow the DBs and participate. Your thoughts are valuable. Feel free to make comments and additional contributions. DO NOT BE SHY. The objective is to apply and share our understanding and knowledge we are learning to real-world macroeconomic policy issues. I will follow the DBs and make comments as well. I enjoy reading your contributions and ideas on the discussion board topics. They can be interesting and incisive with counter arguments from colleagues. A contribution should be at least 2-4 written paragraphs; approximately one page (but can be longer). Hints: Pick a topic or article from readings provided and discuss the macroeconomic merits. Pick a current event. Conduct on-line research for articles and or data to use. Think about the breadth or depth of material you are covering. If you spread yourself too thin, your contribution loses value (remember the concept of diminishing marginal product/value). Three simple examples include: 1) A contribution can be your understanding or understanding of a particular concept. 2) A contribution can be the explanation of graph of data you made or found. It can be real world data or from a model like IS-LM, AD-AS, etc. 3) Discuss the pros and cons (marginal) benefits and marginal) costs of a particular policy Provide citations for whatever articles you are discussing and sources of your data. Use the economic models and concepts you have been learning. Include graphs and algebra as attachments. Rule #1 This is a course in macroeconomics. DB contributions must be objective analyses not subjective analyses. Political statements and advocacy pieces have no value. Approach your DB contribution from the perspective as an economist. Use part or all of your economic tool kit. Rule #2 Any writeup or support file(s) you attach must follow the naming protocol. Name_Econ1012_DB(Trade or Productivity).docx or pdf. Rule #3 Cite and acknowledge data sources, published works, and weblinks. Rule #4 Treat your colleagues with respect when commenting on a post. You can disagree, but (counter)arguments, comments and suggestions should be constructive and not personal.

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