Instructor: Los Angeles Harbor College Economics 2 (Macroeconomics) Spring 2016 Section 0758, Tuesdays and Thursdays 12:45pm 2:10pm, Room NEA-113 Michael Fradkin E-Mail: FradkiM@lahc.edu this is the best way to get hold of me. Voicemail: (310) 233-4157 (please repeat your name and callback number twice, clearly and slowly when leaving me a message). Office Hours: Location - NEA-161 Tuesdays Time: 11:05am 12:40pm 03:50pm 06:50pm Thursdays 11:05am 12:40pm Important Dates: Last day to add class by permit: February 21, 2016 Students not registered for the class will not be permitted in the classroom after February 21, 2016 Last day to drop w/out incurring fees or a grade of W : February 18, 2016 (in person) February 21, 2016 (online) Cesar Chavez Day (campus closed): March 31 April 1, 2016 Spring Break: April 2-8, 2016 Last day to drop with a grade of "W": May 5, 2016 (in person) May 8, 2016 (online) Final exam (1:00pm -3:00pm): June 2, 2016 (subject to change) Please refer to Admissions and Records Office for other important dates. Please be advised that even though it is your responsibility to drop the class, you may be withdrawn from the class by instructor if you do not attend the first class meeting. Textbook: Required: Economics by McConnell, Brue, Flynn, 20 th edition. McGraw-Hill, ISBN: 0078021758 or LAHC custom bundle (includes complete softcover textbook, study guide and access to e-book with additional learning tools); 19 th edition is acceptable (chapter numeration is different) Course Description: This course is an introduction to the principles of economic analysis and economic policy. Emphasis is placed on the macro or national approach, with special attention given to aggregate economics, money, banking and national income. The course explores the problems of unemployment, inflation, and governmental policies related to these problems. Note: ECON 001 is not a prerequisite for this course. Students who plan on taking both are advised to take ECON 002 first. Prerequisites: Mathematics 115 (Elementary Algebra) or Mathematics 123a (Elementary and Intermediate Algebra I) and Mathematics 123b (Elementary and Intermediate Algebra II). Advisories: Mathematics 125 (Intermediate Algebra) or Mathematics 123c (Elementary and Intermediate Algebra III) Student Learning Outcomes: 1. Recognize concepts related to basic economic analysis and analyze verbal, graphical (PPC, Circular Flow, etc.) and tabular information to evaluate the situations in terms of economic statements related to the ideas of opportunity cost, comparative advantage, future economic growth, etc. 2. Use supply and demand graphical model to identify impacts of changes in market conditions and governmental policies on the market price, output, and resource allocation in production of private and public goods under the market economic system (capitalism).
3. Recognize information pertaining to the various national income accounts and assess the health of the macro-economy in different stages of the business cycle; calculate the real and nominal GDP, rates of unemployment and inflation from the presented data. 4. Apply Keynesian economic assumptions and appropriate macro-economic model to answer questions about presented economic situation; identify appropriate fiscal policy to achieve full employment, stability and economic growth; evaluate the impact of the fiscal policy on the public debt. 5. Demonstrate knowledge of the functions of money and the components of the U.S. money supply; identify various tools of monetary policy the Fed is using to promote macro-economic stability and relate the effectiveness of monetary policy mechanisms to changes in actual GDP and price level. Attendance and Participation: Attendance is CRUCIAL to your success. Attendance will be taken each class meeting. Being late or leaving class early without permission will count as ½ of absent time. Three absences or five times of being late (or leaving early) constitutes a basis for excluding from the class or may adversely affect your final grade. I may, but don't have to drop you; it is always the student s responsibility to drop the class. Please obtain contact information of at least two classmates to get information on the class material in case you missed a class. You are expected to actively participate in all class activities, including answering questions and working problems at the board. Etudes: Etudes website is set up for this course. Etudes platform will be mostly used as a storage space for some class materials, a route for communication and a way for partial submission of the homework. Quizzes will be taken on Etudes as well. If you are not familiar with Etudes please visit the help page at http://www.lahc.edu/harboronline.html Please see a special note about Etudes gradebook accuracy under grading scale on next page. Communication: All electronic student-instructor communication for this class will be done through the Etudes website or through the college-issued email account each student was assigned. In order not to miss any important announcement I highly recommend you to link your school email with your personal email. This will effectively have all the emails sent to your college account forwarded to your personal mailbox. Homework: Two homework assignments will be collected and graded; the rest of the homework will be not. There are two parts of the homework submission: online on the Etudes website and turning in the paper assignment in class; please see Etudes for the detailed procedure. Part of the homework which is submitted in person (noted as HW in the weekly course plan below) is due at the beginning of the class - before lecture starts; no late homework will be accepted. If you anticipate being late for the class (or just in case) you may email me your homework or, even better, upload it to Etudes during the online submission. If it is in my inbox before class start time or in Etudes before the deadline it will be accepted, provided it is in a good readable quality. Please PRINT your name on your turned-in homework assignments. Please note that the deadline for the online portion of HW submission is different (usually earlier) from the inperson submission deadline; please observe both to get full credit as each part is graded separately. For not collected homework students are expected to read the assigned material and check their newly gained knowledge by doing assignments at the end of the relevant chapters. In-class group work: There will be one graded in-class group assignment (noted in the weekly course plan as CW. Quizzes: There will be ten graded quizzes for this class. Quizzes are always based on the previous week material. Quizzes are distributed on Etudes. In general, there are NO make-up quizzes with exception of rare documented high-importance cases when a student was not able to access the
Tests: Final Exam: quiz during the entire period it was open. If you missed a quiz, it is given a score of zero. Two lowest quiz grades will be dropped from the final grade calculation. There also will be a syllabus / class information quiz on the Etudes; the quiz is designed to test your knowledge of the class rules, procedures and expectations. There will be two midterm tests. The dates of the tests are listed in the weekly course plan. There will be NO make-up tests for any reason, other than verified medical necessity or other documented matter of high importance. Permission must be granted prior to taking a make-up test. If you miss a test, it is given a score of zero. Final is semi-comprehensive and mandatory. The final exam will be given on Thursday, June 2 (1:00pm-3:00pm) date and time are subject to change. Grading Policy: Syllabus quiz 5 points 1% of the final grade Homework: 40 points 8% of the final grade (20 points each) Classwork: 15 points 3% of the final grade Quizzes: 40 points 8% of the final grade (5 points each) Low Midterm Test: 100 points 20% of the final grade High Midterm Test: 150 points 30% of the final grade Final Exam: 150 points 30% of the final grade -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total: 500 points Grade Scale: A 450-500 points B 400-449 points C 350-399 points D 300-349 points F < 300 points * Note on the Etudes gradebook accuracy. Etudes website is used for this class to support instructions. Some of the class assignments are taken on Etudes, some are completed off the site and, yet, others require partial submission to Etudes. Please note that Etudes gradebook will only reflect the assignments submitted to the site and as a result won t accurately reflect your overall in-class standing. In order to estimate your current class s grade you will need to also consider points collected for assignments taken off Etudes. Cell Phones and Electronic Devices: "As approved by the Associated Student Organization and by the Academic Senate, all cell phones and electronic sound-emitting devices shall be turned off at all times during classes. Cell phones and pagers put on vibrate are acceptable, headsets are not". Students using electronic devices or disrupting the class will receive no attendance credit for the day and/or may be asked to leave. If you are found using a phone during a test I reserve the right to deduct points up to the full value of the exam. Class Policies: 1. The college makes every effort to create free and encouraging learning environment for students but we need your cooperation to achieve our mutual goal. Please read LACCD's Standards of Student Conduct published in the College's catalog. Those rules outline students' expected behavior on campus and are strictly enforced. 2. No audio- or video-recording devices are allowed in the classroom. 3. No food or beverages are allowed in the classroom. 4. No plagiarism or any other form of academic dishonesty will be tolerated in this class. If you are caught cheating on any assignment, including homework, your grade will be severely affected and other unpleasant repercussions will follow. The event will be reported to the Department Chair and VP of Student Services for disciplinary action. Class suspension or expulsion from the college will not make your life any easier.
5. No talking in class. No walking in the classroom during class sessions. 6. It is expected that students will demonstrate respectful in-class behavior and will not interfere with class activities in any way. When making comments during class discussions please be mindful of your classmates who may not share exactly the same point of view: we are here to exchange opinions not to confront each other. Students with disabilities: Please see me if you will require any special accommodation during the class and/or test. A note from the SPS department will be necessary to provide appropriate assistance. Get your appointment with SPS staff early; don t wait until after the first exam. Weekly Calendar: Chapter numbers and pages shown refer to the 20 th edition of the textbook; if you have a different edition, please use listed topics to identify the appropriate areas to study. UNIT I Economic Perspective and Introduction to Macroeconomics Week 1 February 9 and 11, 2016 Ch1 p5-11 and Appendix The Economic perspective: scarcity and opportunity cost. Theories, principles, and models; ceteris paribus. Economic branches, positive and normative statements. Individual s economizing problem. Graphs: building and reading, quick math review. Week 2 February 16 and 18, 2016 Ch1 p11-20, Ch38 p839-848, 851-857 Quiz 1 (online check Etudes for the deadline) Syllabus quiz (online check Etudes for the deadline) Society s Economizing Problem; economic resources: land, labor, capital and entrepreneurship. Production Possibility Curve; unemployment, economic growth and the future. The economic basis for trade: absolute advantage vs. comparative advantage. Gains from trade. Trade barriers and export subsidies. Week 3 February 23 and 25, 2016 Ch2, Ch4 p90-92 CW (Tuesday) Quiz 2 (online check Etudes for the deadline) Economic systems: market and command; characteristics of the market system. Fundamental questions: what to produce, how to produce, who gets products The invisible hand. Circular flow model. Public goods; quasi-public goods (page 95). Week 4 March 1 and 3, 2016 Ch3 and Appendix p75-78 Quiz 3 (online check Etudes for the deadline) Markets. Demand: Law of Demand, changes in demand vs. quantity demanded. Supply: Law of Supply, changes in supply vs. quantity supplied. Market equilibrium; changes in demand and supply, and equilibrium. Applications: government set prices; price floors and price ceilings. Changes in Supply and Demand. Week 5 March 8 and 10, 2016 Ch24 p532-533, Ch25 HW1 (Due Tuesday) Quiz 4 (online check Etudes for the deadline) Performance and policy. Assessing the economy s performance. Gross Domestic Product. Calculation of GDP: the expenditures approach. GDP components. Other National Accounts. Nominal vs. Real GDP. Shortcomings of GDP. Week 6 March 15, 2016 Midterm 1
March 17, 2016 Ch24 p533-535, Ch26 Economic growth; saving and investment. Production Possibilities model revisited. Modern economic growth. Accounting for growth. Productivity growth. Week 7 March 22, 2016 Continuation /finishing of the previous week material March 24, 2016 Ch24 p536-542, Ch27 Uncertainty, expectations and shocks. Sticky prices. The business cycle. Unemployment. Inflation. Week 8 March 29, 2016 Quiz 5 on economic growth (online check Etudes for the deadline) Continuation /finishing of the previous week material March 31, 2016 Cezar Chavez Day: campus closed Week 9 April 5 and 7, 2016 Spring Break: no class UNIT II Essential Macroeconomic Relationships, Macroeconomic Models and Fiscal Policy Week 10 April 12 and 14, 2016 Ch28, (Ch29-optional) Quiz 6 on business cycles, unemployment, inflation (online check Etudes for the deadline) Basic macroeconomic relationships. Income-consumption and income-savings relationships. Average and marginal propensities to spend/save. Non-income determinants of consumption/saving. The interest rate-investment relationship, real vs. nominal interest rate, investment demand curve. Introduction to multipliers. Overview of macroeconomic models: classical vs. Keynesian. Classical model: origin, premises and problems. Great Depression. Basis of the Aggregate Expenditure Model. Week 11 April 19 and 21, 2016 Ch30 Quiz 7 (online check Etudes for the deadline) AD-AS model. Effects of changes in AD and AS. Real life complications. Recessions. Equilibrium and changes in equilibrium. Week 12 April 26, 2016 Midterm 2 April 28, 2016 Midterm-2 review Current and class related events discussion. Week 13 May 3 and 5, 2016 Ch31 Fiscal policy: expansionary and contractionary. Built-in stability. Laffer curve. Current issues and concerns. Social Security and Medicare. Health care reform and its finances. The U.S. Public Debt. UNIT III Money and Monetary Policy Week 14 May 10 and 12, 2016 Ch32 Quiz 8 (online check Etudes for the deadline)
Money: functions and components. Money supply and gold standard. Federal Reserve and the banking system: composition and functions. USA financial crisis and the great recession. Historic perspective. Week 15 May 17 and 19, 2016 Ch33 Quiz 9 (online check Etudes for the deadline) Commercial bank functions and operations. Money creation by banking system through lending. Reserves and monetary multiplier. Week 16 May 24 and 26, 2016 Ch34 Quiz 10 (online check Etudes for the deadline) Interest rates overview: nominal vs. real. Fisher s equation. Demand for money concept. Bond price vs. interest rate. Monetarism - monetary policy at work: restrictive and expansionary. Liquidity trap. Review for final exam Week 17 June 2, 2016 HW2 (Due Tuesday) Final Exam (1:00PM-3:00PM) Standards of Student Conduct A student enrolling in one of the Los Angeles Community Colleges may rightfully expect that the faculty and administrators will maintain an environment in which there is freedom to learn. This requires that there be appropriate conditions and opportunities in the classroom and on the campus. As members of the College Community, students should be encouraged to develop the capacity for critical judgment; to engage in sustained and independent search for truth; and to exercise their rights to free inquiry and free speech in a responsible, non-violent manner. Students shall respect and obey civil and criminal law, and shall be subject to legal penalties for violation of laws of the city, county, state, and nation. Student conduct in all of the Los Angeles Community Colleges must conform to District and College rules and regulations. Violations of such rules and regulations, for which students are subject to disciplinary action, include, but are not limited to the following: Board Rule 9803.10. Willful disobedience to directions of College officials acting in the performance of their duties. Board Rule 9803.11. Violation of College rules and regulations including those concerning student organizations, the use of College facilities, or the t me, place, and manner of public expression or distribution of materials. Board Rule 9803.12. Dishonesty, such as cheating, or knowingly furnishing false information to the Colleges. Board Rule 9803.13. Unauthorized entry to or use of the College facilities. Board Rule 9803.14. Forgery, alteration, or misuse of College documents, records or identification. Board Rule 9803.15. Obstruction or disruption of classes, administration, disciplinary procedures or authorized College activities. Board Rule 9803.16. Theft of or damage to property belonging to the College, a member of the College Community or a campus visitor. Board Rule 9803.17. The malicious or willful disturbance of the peace or quiet of any of the Los Angeles Community Colleges by loud or unusual noise or any threat, challenge to fight, fight, or violation of any rules of conduct as set forth in this Article. Any person whose conduct violates this section shall be considered to have interfered with the peaceful conduct of the activities of the college where such acts are committed. Board Rule 9803.18. Assault or battery, abuse, or any threat of force or violence directed toward any member of the College Community or campus visitor engaged in authorized activities.
Los Angeles Harbor College Academic Senate Plagiarism Policy The following is a general campus policy and more specific examples may be devised by discipline. This policy is based on the following resources: Harris, R. (2001). The Plagiarism Handbook: Strategies for Preventing, Detecting, and Dealing with Plagiarism. Los Angeles, CA: Pyrczak Publishing. The Standards of Student Conduct in the Los Angeles Harbor College Catalog includes Board Rule 9803.12 which states, "dishonesty, such as cheating, or knowingly furnishing false information to the Colleges" shall be subject to disciplinary action. Definition: Plagiarism is a student's failure to distinguish his or her own words and ideas from those of a source the student has consulted. Ideas derived from another, whether presented as exact words, a paraphrase, a summary or quoted phrase, must always be appropriately referenced to the source, whether the source is printed, electronic, or spoken. Whenever exact words are used, quotation marks or an indented block indicator of a quotation must be used, together with the proper citation in a style required by the professor. Usually, three or more words in a row copied from a source without a citation constitutes plagiarism. Examples: Ex. 1. Common knowledge -- John Kennedy was assassinated in 1963 does not require a source, for example. (If a source is used, cite it.) Ex. 2. If you have a question about whether it is plagiarism, be sure to include the quotation marks and citation information. Penalty: The penalty process is decided by the instructor and departmental policies with the following suggested progressive discipline guidelines: warning, rewrite assignment, zero points on assignment, or Administrative discipline. Appeals: Appeals should be directed to the Division Chair for further action as required by due process. Los Angeles Harbor College Mission Los Angeles Harbor College promotes access and student success through associate and transfer degrees, certificates, economic and workforce development, and basic skills instruction. Our educational programs and support services meet the needs of diverse communities as measured by campus institutional learning outcomes.