Principles of
Macroeconomics
Dr. Brad Hansen
Department of
Fall 2004
Office:
Phone: 654 1484
email: bhansen@mwc.edu
Office Hours: MWF
Text: N. Gregory Mankiw, Principles of Economics
Course Description:
Economics is the study of how people choose to allocate scarce resources to satisfy their wants. Economists study how people choose what to produce, how to produce it and who will receive it. Economics is divided into two major branches, microeconomics and macroeconomics. Microeconomics is the branch that examines individual parts of the economy. It examines individuals and their decisions about how to allocate their time and money; it examines businesses and their decision about what to produce and how much to produce; it also examines individual markets such as the automobile market and the housing market.
This course provides an introduction to economics with an emphasis on
macroeconomic problems. Macroeconomics is the branch of economics that studies
the economy as a whole. Much of the economics that you hear about on the news
or read about in newspapers and magazines (unemployment, inflation, interest
rates and the rate of economic growth) is related to macroeconomics
. One of the chief objectives of this course is to develop your ability
to evaluate information that you hear or read about the economy.
Examples of the questions we will examine are:
Why are some countries rich and others poor?
How do we explain periods of decreased output and high unemployment such as the Great Depression of the 1930s?
How do we explain periods of rapidly increasing prices such as the 1970s?
How do we explain the low unemployment and low inflation of the 1990s?
Why has unemployment increased recently?
How does the Federal Reserve influence unemployment and inflation?
Why do economists often disagree about macroeconomic policy?
And, any other questions you might have about macroeconomics.
Course Goals and Objectives:
1. To gain a greater understanding of the field of economics.
2. To become better consumers of economic information.
3. To gain an understanding of the determinants of output, employment and inflation.
Grading:
for a grade of A final class average must be >= 93.0
for a grade of A- final class average must be >=90.0 and <93.0
for a grade of B+ final class average must be >=87.0 and <90.0
for a grade of B final class average must be >= 83.0 and <87.0
for a grade of B- final class average must be >=80.0 and <83.0
for a grade of C+ final class average must be >=77.0 and <80.0
for a grade of C final class average must be >=73.0 and <77.0
for a grade of C- final class average must be >=70.0 and <73.0
for a grade of D+ final class average must be >=65.0 and <70.0
for a grade of D final class average must be >= 60.0 and <65.0
for a grade of F final class average must be < 60.0
Grades are based on performance on three exams and online quizzes. There will be three non-cumulative exams given during the semester and a comprehensive final given during finals week. You may drop the lowest of these four exams. Each test is scored on a 100 point scale and all are equally weighted.
Online quizzes will be submitted by email and are due by
Exams will account for 90% of the grade and quiz scores for 10%.
Course Outline:
If you miss an exam during the semester or do poorly on an exam you may make it up with the final. On the other hand, if you are happy with your grade going into the final week you are not required to take the final.
Questions on the exams will be similar to questions that are in the text and that we work on in class. If you want to do well on the test, come to class prepared, participate in discussions, answer the questions in the text, and work with other people in the class.
I will not formally grade class participation, however, it is very important. If you participate a great deal in class I will tend to give you the benefit of the doubt if your grade is near the border. Notice that with plus minus grading almost all grades are near the border.
Course Outline:
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Monday |
Wednesday |
Friday |
|
1 |
8/23 What is Economics? Read Chapter 1 |
8/25 What is the real cost of a choice? Read Chapter 2 |
8/27 How do people interact in a market economy? Chapter 2 Online quizzes for chapters 1 and 2 are due. |
|
2 |
8/30 How do people benefit from trade? Chapter 3 |
9/1 Does everyone always benefit from trade? Chapter 3 |
9/3 What determines the price of oil? Or wheat? Or computers? Chapter 4 Online quiz Chapter 3 due. |
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3 |
9/6 What causes prices to change? Chapter 4 |
9/8 What is GDP? Chapter 23 |
9/10 How good is GDP as a measure of economic performance? Chapter 23 Online quizzes for chapter 4 due |
|
4 |
9/13 How do we measure changes in the cost the cost of living? Chapter 24 |
9/15 How can you compare costs from different years? Chapter 24 |
9/17 Why are some countries rich and others poor? Chapter 25 Online quizzes for chapter 24 due. |
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5 |
9/20 What can be done to promote economic growth? Chapter 25 |
9/22 Review day. I will answer any questions you have about the material covered so far. |
9/24 Exam Online quiz for chapter 25 due. |
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6 |
9/27 What is the relationship between saving and investment? Chapter 26? |
9/29 Do government deficits effect the economy? Chapter 26 |
10/1 How do you measure the rate of unemployment? Chapter 28 Online quiz for chapter 26 due. |
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7 |
10/4 What causes unemployment? Chapter 28 |
10/6 What is money? Chapter 29 |
10/8 How can the Federal Reserve create money? Chapter 29 Online quiz for chapter 28 due. |
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8 |
10/11 no class, fall break |
10/13 What causes inflation? Chapter 30 |
10/15 Why do we care about inflation? Chapter 30 Online quiz for chapter 29 and 30 due. |
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9 |
10/18 What determines the exchange rate? Chapter 31 |
10/20 Review Day |
10/22 Exam (Chapters 26, 28, 29 30, 31) Online quiz Chapter 31 due. |
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10 |
10/25 Can budget deficits effect trade deficits? Chapter 32 |
10/27 Can tariffs or quotas eliminate the trade deficit? Chapter 32 |
10/29 Why does the economy experience recessions? Chapter 33 Online quizzes Chapter 32 due. |
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11 |
11/1 Are recessions self correcting? Chapter 33 |
11/3 How do taxes and government spending effect the economy in the short run? Chapter 34 |
11/5 How does the Federal Reserve influence the economy in the short run? Chapter 34 Online quiz chapter 33 due. |
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12 |
11/8 How have the roles of the Federal Reserve and the federal government changed over time? Chapter 34 |
11/10 How are inflation and unemployment related to each other? Chapter 35 |
11/12 Is high unemployment the cost of reducing inflation? Chapter 35 Online quizzes chapters 34 and 35 due. |
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13 |
11/15 Should Monetary and fiscal policy makers try to stabilize the economy? Chapter 36 |
11/17 Should monetary policy be made by rule rather than discretion? Chapter 36 |
11/19 Should the Central Bank aim for zero inflation? Chapter 36 |
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14 |
11/22 Should the government balance its budget and should tax laws be reformed to encourage investment? Chapter 36 |
11/24 Thanksgiving |
11/26 Thanksgiving |
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15 |
11/29 Review Online quiz chapter 36 due. |
12/1 Exam |
12/3 Review |