If you purchase a new copy of Macroeconomics, it includes MyEconLab, an online interactive tool that provides an electronic version of the textbook (b
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1 e Economics 1221 Department of Economics Spring 2011 Fulton Tom Office B147h Telephone: PRINCIPLES OF MACROECONOMICS Economics is the painful elaboration of the obvious. Anonymous The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists. Joan Robinson An economist is an expert who will know tomorrow why the things he predicted yesterday didn t happen today. Laurence J. Peter Learning Outcomes By the end of this course, successful students will be able to Understand and use the language of economics Analyze real world situations using economic models Apply economic principles to real world situations Illustrate economic principles and real world situations using graphs Use mathematics to measure and describe economic phenomena Describe the basic economic problem Describe how competitive markets operate Calculate and interpret macroeconomic indicators Analyze the economy using the aggregate expenditure model Analyze the economy using the aggregate demand/aggregate supply model Explain how fiscal policy operates Explain how the Canadian banking system operates Explain how monetary policy operates Office Hours Tuesdays & Thursdays: 12:30-13:20; 16:30-17:00 Wednesdays: 11:30 12:20; 14:30-15:20 To meet with me at other times, please make an appointment. Course Assessment Assignments and Quizzes (due dates to be announced)... 10% Midterm I (Tuesday 15 February 2011)... 25% Midterm II (Thursday 17 March 2011)... 30% Final Examination (date to be announced)... 35% Your letter grade for the course will be assigned on the following basis: % A+ Distinguished Achievement 90-94% A Distinguished Achievement 85-89% A- Distinguished Achievement 80-84% B+ Above Average Achievement 75-79% B Above Average Achievement 70-74% B- Above Average Achievement 65-69% C+ Satisfactory Achievement 60-64% C Satisfactory Achievement 55-59% C- Satisfactory Achievement 50-54% D Marginal Performance 0-49% F Failure Textbooks and Readings Christopher T. S. Ragan and Richard G. Lipsey. Macroeconomics, Thirteenth Canadian Edition. Toronto: Pearson Canada, Paul T. Dickinson and Gustavo Indart. Study Guide, Thirteenth Canadian Edition. Toronto: Pearson Canada, 2011.
2 If you purchase a new copy of Macroeconomics, it includes MyEconLab, an online interactive tool that provides an electronic version of the textbook (but not the Study Guide) along with exercises and quizzes. You are also encouraged to read a major Canadian newspaper such as The Globe and Mail, The National Post, or The Vancouver Sun for articles concerning macroeconomics. Additional readings may be assigned during the semester. Behaviour Standards Please familiarise yourself with e s policy regarding Academic Conduct (see You are forewarned: cheating is unacceptable and cheaters will be penalized. mylangara Portal I will also post announcements, messages, links to articles and websites, and copies of documents including overheads used in class on mylangara. To access these items, log onto mylangara; click on mycourses; click on Course Tool; and click on Principles of Macroeconomics. Documents including overheads are found under Files. If you have questions about the course, please pose them using Message Board in mylangara so that all students can have the opportunity to respond and to view responses. If you have questions about a private matter, please me using your mylangara account or see me in my office. Classes You are expected to attend all classes and are encouraged to read relevant sections of the textbook prior to class. Absence from class does not absolve you from your responsibilities in the course. The overheads used in class are posted in mylangara. Bring a copy of the overheads to class; the blanks in the overheads can be filled in by attending class. Be aware that the overheads are very brief. You are encouraged to read the textbook and complement the overheads with your own notes. You can find out whether I have cancelled classes due to illness by logging onto mylangara or by viewing video screens throughout e. Exercises To succeed in this course, you will need to do exercises, which are available in the Study Guide, at MyEconLab, and in the textbook. Exercises in the Study Guide are highly recommended. Assignments and Quizzes If you miss the deadline for an assignment or a quiz, a significant deduction (up to 100%) will be made from your mark. In addition to assignments that I hand out in class, you have the option of doing quizzes in MyEconLab. Instructions for registering and enrolling in MyEconLab are shown on the last page. If you choose to do the quizzes in MyEconLab, which are generally easier than my assignments, the quizzes are worth 5% and the assignments handed out in class are worth 5% (for a total of 10% of your final grade). Instructions for Examinations Turn off and put away all electronic communication devices. Do not communicate with other students during the exam. Keep your eyes on your own exam. Do not expose your answers to the exam to other students. Leave beverage containers, pencil cases, bags and backpacks at the side of the classroom. The only tools that you require are a pen or pencil, an eraser, a ruler, and a basic calculator.
3 Graphing calculators, cellphones, audio devices, books, notes, and formula sheets are prohibited. Do not share calculators. Turn headwear with brims so that the brim faces backward or remove headwear. Remove hoods and any headwear covering your ears. Use washroom facilities before the exam. If you leave the classroom for any reason, you will not be allowed to continue writing the exam. If medical conditions prevent you from remaining in the classroom for the duration of the exam, you will need to get an assessment from Disability Services. Midterms If you have a valid (illness or bereavement) and documented reason for missing a midterm, you can write a substitute examination. If possible, please contact me prior to missing the exam. Otherwise, contact me within 48 hours of missing the exam to indicate your intention to continue with the course. The date of the substitute exam may be as late as Monday 11 April Final Examination If you miss the final examination without a valid and documented reason, you will receive the letter grade, "N", for the course. Regrading of Exams To have your exam regraded, submit your request in writing (an is acceptable) stating precisely which question(s) you want reexamined and why you believe you deserve a different mark. A request that indicates only the question(s) you want reexamined will be rejected. Exams submitted for regrading will be reevaluated in their entirety. As a result, your mark can increase, decrease, or remain unchanged. How to Succeed in this Course Attend classes. Take effective notes. Review and edit your notes within 24 hours. Read the relevant textbook chapters before class. Do exercises on a timely basis. Ask questions in and out of class. Anticipate exam questions and answer them. Meet deadlines. Use the instructor s office hours. Form study groups. Learn how to learn. OUTLINE OF TOPICS Week 1: What is Economics? - The basic economic problem. The production possibilities model. Types of economic systems. Positive vs. normative statements. Economic theories and models. Graph review. Chapters 1 & 2. Weeks 2 & 3: An Introduction to Demand and Supply - Demand, supply, and market equilibrium. Analysis of markets. Chapter 3. Weeks 3 & 4: An Introduction to Macroeconomics Overview of macroeconomics. Gross Domestic Product. The business cycle. Employment and unemployment. Types of unemployment. Non-accelerating Inflationary Rate of Unemployment (NAIRU). Productivity. Inflation and the Consumer Price Index. Interest rates. The international economy. Circular flow of expenditure and income. National income accounting.
4 Chapters 19, 31 (except section 31.2) & 20. Week 6: Midterm I Tuesday 15 February 2011 Week 6: Spring Break - no class on Thursday 17 February 2011 Weeks 5-8: The Economy in the Short Run The basic aggregate expenditure model. The multiplier. Adding government and trade to the aggregate expenditure model. The aggregate demand and aggregate supply model. Short-run equilibrium. Chapters 21, 22 & 23. Week 8: Last day to withdraw Friday 4 March 2011 Week 9: The Economy in the Long Run The adjustment process. Long-run equilibrium. Fiscal stabilization policy. Automatic stabilizers and discretionary fiscal policy. Chapter 24. Week 10: Midterm II Thursday 17 March 2011 Weeks 10 & 11: Government Debt and Deficits The cyclically adjusted deficit. The stance of fiscal policy. Effects of government debt and deficits. Fiscal rules. Chapter 32. Weeks 11-13: Money, Banking, and Monetary Policy - Functions of money. Roles of the Bank of Canada. Commercial banks and money creation. The money supply. Bonds. The demand for money. The money market. The monetary transmission mechanism. The Bank of Canada and monetary policy. Chapters 27, 28 & 29 (except section 29.4). Other topics if time permits Final Examination - date to be announced How to Register and Enroll in Your MyEconLab Course Welcome to MyEconLab! Your instructor has set up a MyEconLab course for you. Textbook: Ragan/Lipsey, Macroeconomics, 13ce Course Name: ECON Spring 2011 Course ID: XL0M-31MQ-301Y-6Z62 To join your instructor's course, please complete the following two steps: 1. REGISTER for MyEconLab, and, 2. ENROLL in your instructor's course To register, you will need: 1. A valid address, and, 2. The access code that came with your MyEconLab Access Kit If you don't have an access kit, you can purchase access online at You will have the choice to purchase access with or without a full etext. Once enrolled in your
5 professor's course, you will also have the option to purchase a discounted version of your text. Step 1: Register for MyEconLab 1. Go to and click the Students button, in the Register section. 2. Follow the on-screen instructions for choosing author and title. 3. Choose Register with an Access Kit/Code if an access kit was included with your book. If you need to purchase access online, click Purchase Access. 4. Follow the instructions to set up your login and password and register for your course. Step 2: Enroll in your instructor's course 1. Log in to MyEconLab at with your newly created Login Name and Password 2. Enter your Course ID: XL0M-31MQ-301Y-6Z62 If you purchased access, visit the Student Center inside your Instructor's Course for additional purchase options. Note: If you are taking two MyEconLab courses simultaneously you will need two separate login accounts. Need Help? For assistance, please visit
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