Principles of Macroeconomics

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General course information and requirements

Semester Spring 2017
Course: Economics 216 (Principles of Macroeconomics)
Prerequisite: Economics 215 (Principles of Microeconomics)
Instructor: Robert J. Stonebraker
Office: 401 Thurmond  
Office Phone: 323-2488
Office Hours: M 3:30-4:30 pm, T and W 12:30-1:30 pm, R 12:30-1:30 and 3:30-4:30 pm, F 9 am-12 pm  (no appointment needed)
                        Other times are available by appointment.

Course objective:

The course will give students a solid foundation in understanding and applying basic macroeconomic concepts and links to University-Level Competency #1: Winthrop graduates think critically and solve problem. The course will challenge students to think critically about a wide range of current macroeconomic issues.  For example, students will be expected to analyze such critical issues as economic growth, unemployment, inflation, financial system stability, national debt and trade deficits.

Brief Principles of Macroeconomics, 7th edition, by N. Gregory Mankiw. [Note: the 6th edition is an acceptable substitute.] Although exam questions are based on the lecture material, good lecture notes and conscientious textbook reading reinforce each other. 

The grading will be straight letter grades: no plusses or minuses. Four exams will determine your grade. The weight for each exam is:

Click here for a spreadsheet that will calculate your course average.
Exam questions will stress analysis rather than factual information and will be based on the material presented in class. You will be expected to write short essay/explanation answers and to solve graphical and numerical problems. Students caught copying/cheating will be dealt with harshly. The final exam will be given at 11:30 a.m. on Friday, April 28 and will include some specified review material. The approximate grading scale will be:

        86 - 100%      A
        72 - 85%        B
        60 - 71%        C
        50 - 59%        D
          0 - 49%        F
Make-up policy:
Make-up exams will be given to students with what I judge to be a valid excuse. Needing more time to study is not a valid excuse. If you can't make an exam I expect to be notified as quickly as possible, preferably before the exam. Students who do not notify me in a timely manner should not expect a make-up exam.
Problem Sets:
A number of problem sets will be distributed though the semester.  You will not be asked to turn them in and they will not be graded. To access the answers, click on the link at the top of this web page. It will be your responsibility to do these problems, check the answers, and ask questions about any that are not clear. Although the problem sets are not graded, students who are serious about learning the material and doing well in the course will complete them.  Similar problems will appear on exams.
Cell phones and related devices:

DO NOT use cell phones in class. That means no texting and no checking messages; even under the desk where you think I will not see them.  Laptops, tablets or similar electronic devices may be used for note-taking or specified course activities with the instructorís permission. Students using these devices must turn off the wireless function and close all applications/windows other than the allowed document or application. Each time a student is caught violating this policy I will deduct one point from his/her final average.

Attendance policy:

You are responsible for all class material whether or not you attend. Students will lose two points from their final average for every class missed in excess of three (except for required, official Winthrop activities such as class trips or varsity sport participation). An exception might be made for students forced to miss more than three classes because of documented medical problems. Class will start promptly each day. Students will be assigned one absence for every two times they arrive late. If a student signs in for another, both students will be given three absences.

Course withdrawal:
Wednesday, March 8 is last day to withdraw from a full fall semester course.  (Automatic N grade is issued.)  Students may not withdraw from a course after this date without documented extenuating circumstances.
Students with Disabilities/Need of Accommodations for Access:
Winthrop University is committed to providing access to education.  If you have a condition which may adversely impact your ability to access academics and/or campus life, and you require specific accommodations to complete this course, contact the Office of Accessibility (OA) at 803-323-3290, or, Please inform me as early as possible, once you have your official notice of accommodations from the Office of Accessibility. 
As a student you should expect me to take my class responsibilities seriously.  You should expect me to deliver quality instruction in each class, to start and end each class on time, to be responsive to student perspectives and questions, and to treat each of you with respect.  As an instructor, in addition to adherence to Winthropís Code of Student Conduct, I expect similarly responsible behavior from you. 


Course Outline


I. Fundamental Concepts: How an Economy Works
A. Scarcity and choice
     chapters 1 and 2 (skim)
B. Trade and comparative advantage
     chapter 3
     Video: Production Possibilities Frontier
     Video: PPF and Increasing Opportunity Costs
     Video: Comparative Advantage
     Video: Nobody Knows How to Do Anything
     Consumption Possibilities Frontiers
     Petition of the Candle Makers
C. Supply and demand
     chapter 4
     Demand and Supply: An Overview
     Video: Determinants of Demand
     Video: Shifting the Demand Curve
     Video: Supply Shifts
     Video: Market Equilbrium
     Video: Demand Shifts and Equilibrium
     Video: Supply Shifts and Equilibrium
     Demand and Supply: Sample Problems
II. Introduction to Macroeconomic Concepts
A. Gross domestic product
     chapter 5
     Video: GDP
     Video: Real and Nominal GDP
B. Inflation and price indexes
     chapter 6
     Video: GDP Deflator (or Price Index)
     Video: Inflation and Price Indexes
C. Government budgets
     Government Finances
          EXAM #1: Approximately Thursday, February 2
III. Long-run Macroeconomics in a Closed, Real Economy
A. Growth and productivity
     chapter 7
     Video: Growth and the PPF
B. Loanable funds and financial markets
     chapters 8 and 9
     Video: Future and Present Value
C. Causes and effects of unemployment
     chapter 10
     Video: Measuring Unemployment
         EXAM #2: Approximately Tuesday, February 28
IV. Money and Prices
A. Money and the Federal Reserve System
     chapter 11
     Money; What and Why
     Escape from the Barter Islands: An Interactive Game
     Video: Structure of the Fed
     Video: Money Creation
B. Causes and effects of inflation
     chapter 12 (ignore graphs on pp. 247-248)

V. Long-run Macroeconomics in an Open Economy
A. International flows and exchange rates
     chapter 13
     Demand and Supply Applied: Exchange Rates
     Video: Exchange Rates
     Video: Imports, Exports, and Exchange Rates
B. Equilibrium in an open economy
     Note: chapter 14 covers the topic, but does so with unnecessarily confusing graphs that I will not be using in class.
        EXAM #3: Approximately Thursday, March 30
VI. Short-Run Macroeconomics
A. Aggregate demand and aggregate supply
     Overview of AS
     Video: Short Run and Long Run AS
     chapter 15
B. Monetary and fiscal policy
     chapter 16 and pp. 412-419 in chapter 18
     Video: Fiscal Policy
     Video: Fiscal Policy
     Video: Monetary Policy Tools
     Video: Links from Monetary Policy to Real Output

VII. Current Macroeconomic Debates
A. Deficits and debt
     pp. 423-426 in chapter 18
     The National Debt: So What?
B. Supply-side tax policy
     pp. 426-429 in chapter 18

Macroeconomics: A Summary

FINAL EXAM: Friday, April 28 at 11:30 a.m.

Are you interested in seeing current economic data? Click the links below for current data on:
     Gross Domestic Product
     National debt
     Distribution of income
     International currency exchange rates

Last modified 01/03/17