Principles of Macroeconomics

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General course information and requirements

Semester Spring 2012
Course: Economics 216 (Principles of Macroeconomics)
Prerequisite: Economics 215 (Principles of Microeconomics)
Instructor: Robert J. Stonebraker
Office: 401 Thurmond  
Office Phone: 323-2488
E-mail: stonebrakerr@winthrop.edu
Office Hours: M 3:30 - 4:30 p.m., T 9 - 11 a.m., W 1 - 2 p.m., R 9 - 11 a.m. and 3:30 - 5 p.m., F 11 a.m.  - 12 p.m. (no appointment needed)
                        Other times are available by appointment.

Course objective:

The course is designed to give students a solid foundation in understanding and applying basic macroeconomic concepts. In doing so, we expect students to develop stronger problem-solving skills. In addition, as a General Education Social Science, it involves the following goals:

To acquire and appreciate quantitative skills: Quantitative data and relationships are an integral part of any course in economics.  Students will study how to calculate, critique and analyze such quantitative measures as as real and nominal gross domestic product, price indexes, unemployment rates, exchange rates and trade balances.

To use critical thinking, problem-solving skills and a variety of research methods: Students will be expected to critically analyze a wide variety of macroeconomic policy initiatives.

Understand the nature of social and cultural conflict and methods of resolution: Social and cultural conflict often originates with the disparate goals of consumers and producers, of competing producers, and of competing interest groups. Students will learn to appreciate how an efficient economic system can resolve these conflicts in a way that maximizes overall social value.

Examine problems, issues and choices that confront citizens of the world: Students will be expected to analyze such critical issues as economic growth, unemployment, inflation, financial system stability, national debt and trade deficits.

Textbook:
 
Brief Principles of Macroeconomics, 6th edition, by N. Gregory Mankiw. Although exam questions are based on the lecture material, the text material closely parallels the lectures. Good lecture notes and conscientious textbook reading reinforce each other.
Grading:
 
The grading will be straight letter grades: no plusses or minuses. Three exams will determine 94% of your grade. Two short writing assignments will determine the remaining 6% of your grade. The weight for each assignment is:


Click here for a spreadsheet that will calculate your course average.
 
Exams:
 
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 3 p.m. on Thursday, April 26 and will include some specified review material.  Calculators will not be permitted during exams.  College students should be able to do arithmetic. The approximate grading scale will be:

        90 - 100%      A
        76 - 89%        B
        64 - 75%        C
        54 - 63%        D
          0 - 53%        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.
Writing Assignments:
 
Students will be expected to write two short papers comparing macroeconomic statistics from countries of their choice. For detailed instructions, click on: Writing Assignment Instructions.
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. The answers are posted on this course 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.
Participation:
 
Each student automatically begins with four participation points added to their final course average. Students who attend regularly, come to class on time, and pay attention will keep these points throughout the semester. Students who miss classes without good cause, who often come late, who sleep during class, who use their cell phones during class, who read or study non-class material during class, or who exhibit other problems of attentiveness will lose points.
Attendance policy:
 
You should attend every class on time and are responsible for all class material whether or not you attend. Students with multiple absences run the risk of losing participation points. In addition, following the Winthrop University Attendance Policy, students missing as many as 1/4 of the classes who do not withdraw by the deadline will receive a grade of F, or U, whichever is appropriate.
Course withdrawal:
 
Wednesday, March 7 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:
 
Winthrop University is dedicated to providing access to education.  If you have a disability and require specific accommodations to complete this course, contact Gena Smith, Coordinator, Services for Students with Disabilities, at 323-3290 as soon as possible.  Once you have your Professor Notification Form please tell me so that I am aware of your accommodations well before the first assignment.
Expectations:
 
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 Winthrop’s Code of Student Conduct, I expect similarly responsible behavior from you.  In particular, I expect that you will:

1.   Attend every class. In addition to the obvious negative impact on your own learning, your absences can damage your classmates as well. Students that skip classes, ask questions that were answered last week, and then mooch missed notes and material from conscientious classmates who are trying to pay attention impede the learning of others and slow the pace at which material can be covered.

2.   Come to class on time and stay until its conclusion. Late arrivals and early departures can be disruptive and inconsiderate of others.  However I recognize that well-meaning students must occasionally be late or leave early. If you do arrive after the class has begun, please enter the rear door and sit in the back row so as to minimize the distraction for others. Similarly, if you must leave early, please notify me in advance and sit near the back door so that you can leave unobtrusively.

3.   Turn off and put away all cell phones and other media devices. I expect never to see these in class. That means no listening to iPods or other media devices, and no texting or checking messages under the desk where you think I will not see them.

4.    Pay attention and participate. While in class you should be concentrating on class.  That means no idle conversations with those around you, no attempts to complete work or study for other classes, and no other extraneous activities. Such behavior distracts others and negatively impacts on the learning environment.

 

Course Outline

 

I. Fundamental Concepts: How an Economy Works
A. Scarcity and choice
     chapters 1 and 2 (skim)
B. Supply and demand
     chapter 4
     Demand and Supply: An Overview
C. Trade and comparative advantage
     chapter 3
     International Trade
     Petition of the Candle Makers
 
II. Introduction to Macroeconomic Concepts
A. Gross domestic product
     chapter 5
B. Inflation and price indexes
     chapter 6
III. Long-run Macroeconomics in a Closed, Real Economy
A. Growth and productivity
     chapter 7

EXAM #1: Approximately Thursday, February 9

B. Loanable funds and financial markets
     chapters 8 and 9
C. Causes and effects of unemployment
     chapter 10
 
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
B. Causes and effects of inflation
     chapter 12 (ignore graphs on pp. 247-248)

EXAM #2: Approximately Thursday, March 29

V. Long-run Macroeconomics in an Open Economy
A. International flows and exchange rates
     chapter 13
     Demand and Supply Applied: Exchange Rates
B. Equilibrium in an open economy
     chapter 14
VI. Short-Run Macroeconomics
A. Aggregate demand and aggregate supply
     Overview of AS
     chapter 15
B. Monetary and fiscal policy
     chapter 16 and pp. 412-419 in chapter 18
 
VI. 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  

FINAL EXAM: April 26  (3 p.m.)

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


Last modified 01/02/12