SPRING 2016 PRINCIPLES OF MACROECONOMICS ECON 201

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1 SPRING 2016 PRINCIPLES OF MACROECONOMICS ECON 201 INSTRUCTOR: Dr. Clarence M. (Chip) Condon III OFFICE: OFFICE HOURS: Phone: Tate Center 2:00-3:00 TR & after class Room 305 or by appointment COURSE DESCRIPTION: The foundation of economic analysis is presented, including identification of basic social goals, money and credit systems, and theories of national income, employment, economic growth, and international interdependence. Prerequisite: ECON 200 COURSE OBJECTIVES: Students will gain factual knowledge of the macro economy, develop critical thinking and analytical skills through understanding the following macroeconomic models and concepts. SCHOOL LEARNING GOALS: Quantitative Fluency: Students demonstrate competency in logical reasoning and data analysis skills. Global and Civil Responsibility: Students identify and define social, ethical, environmental and economic challenges at local, national and international levels. Students integrate knowledge and skills in addressing these issues. Demonstration of achievement will be assessed on homework, tests and the final exam. GENERAL EDUCATION STUDENT LEARNING OUTCOME: Students apply social science concepts, models, and theories to explain human behavior, social interactions, and social institutions. This learning outcome will be assessed in the final exam. REQUIRED COURSE MATERIAL: TEXT & HOMEWORK: Sapling Learning e-text for Macroeconomics, 3rd edition, Paul Krugman and Robin Wells, Worth Publishers, New York. Purchase online from for $90.00 (includes e-textbook), $40.00 (without e-textbook) or you may purchase an access card from the bookstore. Instructions for registering with Sapling Learning for this course are found on the last page of this syllabus. READING & HOMEWORK ASSIGNMENTS: All reading and homework assignments including due dates are listed on our SaplingLearning website. Because the website is updated periodically, you need to check it frequently. In general, reading assignments should be completed before the lecture covering that assignment. Homework assignments are due every Monday evening no later than 11:45pm and may be completed early but are not accepted for any reason after the deadline. You have an unlimited number of attempts to complete the Sapling homework assignment; however, there is a 5% deduction in the points awarded for the problem for each successive attempt. The homework problems provide substantial feedback for mistakes so that you can understand why the mistake was made and correctly complete the problem. Since all homework assignments must be completed by the deadline, please be sure to allow yourself enough time before the deadline to avoid being locked out of the assignment. ATTENDANCE: Regular class attendance is required. You are expected to be an active participant. This means: (1) read assignments before they are discussed; (2) answer questions in class on the assigned material; and (3) contribute to class discussion. Please note that you are responsible for all material covered in class, whether you are present or not.

2 GRADING: There will be three tests, each covering approximately one third of the semester s material, and a comprehensive final exam. All three tests collectively count fifty percent of your semester average with the highest two test scores counting twenty percent each and the lowest test score counting only ten percent. The comprehensive final exam counts thirty percent and the homework twenty percent. Given that the subject builds upon itself, all tests and homework are to some degree comprehensive, but please note that the final exam will be truly comprehensive. Therefore, it is very important that you study from the beginning of the semester in a manner that will allow you to understand and retain permanently the basic economic principles covered in this course. Typically, for a student to be successful in this course, he or she must spend an average of at least six hours per week outside of class studying the subject reading the text, doing the homework, and thinking about applications. There will also be a few extra credit assignments announced throughout the semester to provide you with additional opportunities to broaden your knowledge and improve your grade. Tests 50% Homework 20% Final Exam 30% Grading Scale: A 93% 93%>A- 90% 90%>B+ 87% 87%>B 83% 83%>B- 80% 80%>C+ 77% 77%>C 73% 73%>C- 70% 70%>D+ 67% 67%>D 63% 63%>D- 60 F<60% If your attendance, attitude and class participation strongly suggest to me that your semester average significantly underestimates what you have learned in this course, I reserve the right to adjust your course grade appropriately higher. MAKE-UP POLICY: There are NO MAKE-UPS on any test or homework for any reason. Tests should be taken when scheduled. If you miss a test, your final exam score will be used in place of the missed test minus a ten-point penalty if your absence was not excused. REASONABLE ACCOMMODATION POLICY: If there is a student in the class who has a documented disability and has been approved to receive accommodations through the Center for Disability Services (SNAP), please come and discuss this with me during my office hours. CENTER FOR STUDENT LEARNING: I encourage you to utilize the Center for Student Learning s (CSL) academic support services for assistance in study strategies and course content. They offer more than just tutoring. Students of all abilities have become more successful using these programs throughout their academic career and the services are available to you at no additional cost. For more information visit the CSL website at or call HONOR CODE: All students are expected to abide by the Honor System as outlines in the Student Handbook. If you have not read it recently, please do so. It will be strictly enforced. DISCLAIMER: While it is the intent of the instructor to follow the syllabus as closely as possible, this syllabus may be changed at any time to meet unforeseen circumstances.

3 PRINCIPLES OF MACROECONOMICS ECON 201 SPRING 2016 TENTATIVE SCHEDULE OF ASSIGNMENTS AND EXAMS DATE CHAPTER(S) TOPICS COVERED JAN 7 Introduction Syllabus and Sapling Learning 12 CH 2 Economic Models: Production Possibilities 14 CH 2,5 Circular Flow, Comparative Advantage 19 CH 5 Trade 21 CH 7 Measuring the Macroeconomy 26 CH 7 Nominal GDP, Real GDP, Price Index calculations 28 CH 8 Unemployment FEB 2 CH 8 Unemployment and Inflation 4 Test #1 CH 2, 5, 7, 8 9 CH 9 Long-run Economic Growth 11 CH 10 Saving and Investment Spending 16 CH 10 Saving, Investment Spending and the Financial System 18 CH 11 The Multiplier (no Keynesian Cross Graphs) 23 CH 11 Income and Expenditure 25 CH 12 Aggregate Demand and Aggregate Supply MAR 1 CH 12 Aggregate Demand and Aggregate Supply 3 Test #2 CH 9, 10, 11, Spring Break 15 CH 13 Fiscal Policy, Deficits and Debt 17 CH 13 Fiscal Policy 18 Last Day To Withdraw 22 CH 13 Fiscal Policy 24 CH 14 Money & Banking 29 CH 14 The Federal Reserve 31 CH 15 Monetary Policy APR 5 CH 15 Monetary Policy 7 CH 18 Events & Ideas 12 CH 19 Capital Flows and the Balance of Payments, Exchange Rates 14 CH 19 Exchange Rates 19 Review 28 12:00-3:00 Test #3 and Comprehensive Final Exam CH 13, 14, 15, 18, 19 and CH 2, 5, 7-12 NOTE: SAPLING LEARNING HOMEWORK ASSIGNMENTS ARE DUE MONDAYS BY 11:45 PM. THE SCHEDULE IS ON

4 CONCEPTS OF LASTING VALUE 1. OPPORTUNITY COST There is no such thing as a free lunch. 2. REAL VERSES NOMINAL VALUES Concentrate on what is real, not just what is easy to see. 3. INCENTIVES People respond to incentives. What are they and will they achieve the desired results? 4. MODELS & ABSTRACT THINKING It may be simplistic and unrealistic, but it's extremely useful. 5. SUPPLY & DEMAND ANALYSIS There is a reason for the saying: Teach a parrot the words supply and demand and you ve got an economist! 6. MACROECONOMIC EQUILIBRIUM I know the economy is in equilibrium because the unemployment line I'm standing in isn't getting longer or shorter. 7. MARKETS SOMETIME FAIL Should government intervene? 8. RULES VERSES DISCRETION IN ECONOMIC POLICY Hell is paved with good intentions verses Nero fiddles while Rome burns. 9. MUTUAL GAINS FROM TRADE Maybe there is a free lunch. 10. INVESTMENT IS THE KEY TO GROWTH No pain, no gain.

5 INSTRUCTIONS FOR REGISTERISNG WITH SAPLING LEARNING FOR THIS COURSE: If you already have a Sapling Learning account, log in then find your course in the list (you may need to expand the subject and term categories) and click the link. New Students click on "Register here". Supply the requested information and click "Create my new account". Check your (and spam filter) for a message from Sapling Learning and click on the link provided in that . Find your course in the list (you may need to expand the subject and term categories) and click the link. If you have a Facebook account, you can use it to quickly create a Sapling Learning account. Click the blue button with the Facebook symbol on it (just to the left of the username field). The forms will auto-fill with information from your Facebook account (you may need to log into Facebook in the popup window first). Choose a password and time zone, accept the site policy agreement, and click "Create my new account". Find your course in the list (you may need to expand the subject and term categories) and click the link. SAPLINGLEARNING TECHNICAL PROBLEMS: During sign up and throughout the term if you have any technical problems or grading issues, send an explaining the issue to support@saplinglearning.com The Sapling support team is almost always more able (and faster) to resolve issues than your instructor.

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