William Rainey Harper College
ECO 212
Macroeconomics in a Global Economy

Daily Lessons

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DAILY SCHEDULE OF ASSIGNMENTS: Click on date for reading and video assignments.

August
September
October
November
December

Mon.
Wed.

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8/25- 1a

8/27 - 1b

Mon.
Wed.

9/1 No School

9/3 - 1c
- Syllabus Quiz

9/8 - 1d

9/10 - 2a

9/15 - 3a

9/17 - 3b

9/22 - 3c

9/24 - 20a
- Paper 1 due

9/29 - 20b

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Mon.
Wed.

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10/1 - 5a

10/6 - 5b

10/8 - Exam 1

10/13 - Unit 2 Introduction

10/15 -12a

10/20- 12b
- last rewrite for paper 1

10/22 - 9a

10/27 - 9b
- Paper 2 due

10/29 - 7a

Mon.
Wed.

11/3 - 8a

11/5 - 22Wa

11/10 - Exam 2

11/12 - 14a

11/17 - 15a
- last day for paper 2 rewrite

11/19 - 16a
Quiz 5

11/24 - 10a
- Paper 3 due

11/26 No School

Mon.
Wed.

12/1 - 13a

12/3 - 13b

12/8- 16a

12/10 - Exam 3
- last day for paper 3 rewrite

12/15 - Final Exam

12/17 - Final Exam

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UNIT 1 - INTRODUCTION TO ECONOMICS AND GLOBALIZATION

1a Syllabus and introduction to Economic Globalization

Reading:

  • NA

Videos:

  • To watch 5 minute video:

    • Click on: http://www.learner.org/resources/series86.html
    • Scroll down to:
      • 10. Developing Countries - How these nations have been helped or hurt by the rapid growth since WWII. Case studies: comparing South Korea and Sri Lanka; aid vs. trade in Tanzania.
    • Click on
    • Then slide the timer to minute 7:45 for the eight minute South Korea vs. Sri Lanka case study

Outcomes / Must Know:

  •  

Practice:

  •  

 

Extra Videos

1b 5Es

Reading:

  • Syllabus
  • The 5Es of Economics (VERY IMPORTANT!)
  • Ch. 3: "Efficient Allocation" pp. 58-59
  • Ch. 3 and 6: "Diminishing Marginal Utility" pp. 49 and 117
  • Ch.1, Appendix on Graphing

Videos:

Outcomes / Must Know:

  •  

Practice:

1c What is Economics, Models, BCA, Budget Lines

Reading:

  • Ch 1, pp.1-11

Videos:

Outcomes / Must Know:

  •  

Practice:

  •  

Extra Videos

 

1d PPC

Reading:

  • Budget Lines: pp. 7-10
  • PPC: pp. 11-14

Videos:

Outcomes / Must Know:

  •  

Practice:

  •  

Extra

2a Globalization (Structural Adjustment)

Reading:

  • Cuba Examines Asian Model For Economic Reforms (NPR Morning Edition)
  • Textbook:
    • Chapter 2 ALL
    • PLUS
      • Ch. 2 Last Word: "Shuffling the Deck": p. 42
      • Ch. 8 The Last Word - "Economic Growth in China": p. 166
      • Ch. 8 Global Competition, p. 164
      • Ch. 20 The Last Word - "Petition of the Candlemakers, 1845": p. 419
      • http://www.harpercollege.edu/mhealy/eco212i/lectures/command/econsys.htm
      • Chapter 23W of the 16th edition of our textbook, pages 2-13, found on our Blackboard site
        • State Ownership and Central Planning: pp. 23W-2 to 23W-3
        • Problems with Central Planning pp. 23W-3 to 23W-5
        • The Collapse of the Soviet Economy pp. 23W-5 to 23W-6
        • The Russian Transition to a Market System pp. 23W-6 to 23W-9
        • Market Reforms in China pp. 23W-10 to 23W-11
        • Outcome and Prospects pp. 23W-11 to 23W-13
        • Conclusion pp. 23W-13

Videos:

Outcomes / Must Know:

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Practice:

Extra Videos

3a Demand

Reading:

Videos:

Outcomes / Must Know:

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Practice:

Extra Videos

  • Introduction to economics
  • Law of demand
  • Change in expected future prices and demand
  • Price of related products and demand
  • Changes in income, population, or preferences
  • Normal and inferior goods
  • Inferior goods clarification
  • Law of supply
  • Factors affecting supply
  • Long term supply curve
  • Market equilibrium
  • Changes in market equilibrium
  • Breakdown of gas prices
  • Short-run oil prices

 

3b Supply

Reading:

  • Ch3, pp. 53-56

Videos:

Outcomes / Must Know:

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Practice:

  •  

Extra Videos

 3c Market Equilibrium: So, what happens to Price and Quantity?

Reading:

Videos:

 

Outcomes / Must Know:

  •  

Practice:

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Extra Videos

 

20a Why we Trade: Comparative Advantage

Reading:

Videos:

Outcomes / Must Know:

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Practice:

Extra Videos

20b International Trade and Foreign Exchange Markets

Reading:

  • Flexible Exchange Rates pp. 429-430;
  • Recent U.S. Trade Deficits pp.438-439

Videos:

Outcomes / Must Know:

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Practice:

  •  

Extra Videos

 

5a Role of Gov't and Gov't Finance

Reading:

Videos:

Outcomes / Must Know:

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Practice:

5b Market Failures

Reading:

  •  
  • Chapter 3: Application: Government-Set Prices pp. 61-64
  • Chapter 5: Public Goods; Externalities; Government’s Role in the Economy pp. 99-110

Videos:

Outcomes / Must Know:

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Practice:

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UNIT 2 INTRODUCTION TO MACROECONOMICS

12a AD/AS 1

Reading:

  • Chapter 12 - Aggregate Supply and Aggregate Demand
    • Chapter 12 ALL (not the appendix)
    • PLUS:
      • Ch. 9: The Business Cycle: pp. 171-173
      • Ch. 13: Fiscal Policy and the AD-AS Model: pp. 258-261
      • Ch. 18: Taxation and AS (Supply -Side Economics): pp. 374-378
      • Ch. 18: From Short Run to Long Run / Applying the Extended AS-AS Model - pp. 362-368
      • Ch. 9: Types of Inflation: pp. 179-180
  • Ch. 6 Reading Assignments:
    • Chapter 6 ALL
    • PLUS:
      • Review Ch. 9: The Business Cycle: pp. 171-173
  • Review Ch. 1: "Present Choices, Future Possibilities": pp. 16-18

Videos:

Outcomes / Must Know:

  •  

Practice:

Chapter 12

Chapter 6

  • Reading Assignments:
    • Chapter 6 ALL
    • PLUS:
      • Review Ch. 9: The Business Cycle: pp. 171-173
      • Review Ch. 1: "Present Choices, Future Possibilities": pp. 16-18
  • Study Guide – Chapter 6
    • Multiple Choice: 1-5, 7-10, 13-15, 22, 25
    • Problems: 2, 3
  • Web Quiz: Chapter 6 # 2-10 at http://highered.mcgraw-hill.com/sites/0077337727/student_view0/chapter6/quiz.html
  • End-of-Chapter Questions and Problems:
    • Questions # 1, 4, 5, 6
    • Problems # 3, 5

Extra Videos

  

12b AD/AS 2

Reading:

  • Chapter 12 - Aggregate Supply and Aggregate Demand
    • Chapter 12 ALL (not the appendix)
    • PLUS:
      • Ch. 9: The Business Cycle: pp. 171-173
      • Ch. 13: Fiscal Policy and the AD-AS Model: pp. 258-261
      • Ch. 18: Taxation and AS (Supply -Side Economics): pp. 374-378
      • Ch. 18: From Short Run to Long Run / Applying the Extended AS-AS Model - pp. 362-368
      • Ch. 9: Types of Inflation: pp. 179-180
  • Ch. 6 Reading Assignments:
    • Chapter 6 ALL
    • PLUS:
      • Review Ch. 9: The Business Cycle: pp. 171-173
  • Review Ch. 1: "Present Choices, Future Possibilities": pp. 16-18

Videos:

  •  

Outcomes / Must Know:

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Practice:

  •  

Extra Videos

 

9a UE

Reading:

  • Chapter 9: ALL
  • Ch. 7: "GDP Price Index," pp. 141-142

Videos:

Outcomes / Must Know:

  •  

Practice:

Extra Videos

 

9b IN

Reading:

  •  
  • Chapter 9: ALL

Ch. 7: "GDP Price Index," pp. 141-142

Videos:

Outcomes / Must Know:

  •  

Practice:

Extra Videos

7a GDP

Reading:

  • Chapter 7 - ALL 

Videos:

Outcomes / Must Know:

  •  

Practice:

 

Extra Videos:

 

8a EG

Reading:

Videos:

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Outcomes / Must Know:

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Practice:

Extra Videos:

22Wa LDCs

Reading:

  • Chapter 22W - ALL

Videos:

Outcomes / Must Know:

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Practice:

 

UNIT 3 MACROECONOMIC POLICY

14a What is Money? Money Market Model, and the Fed

Reading:

  • Chapter 14: ALL
  • Chapter 16: Interest Rates pp. 315-317

Videos:

Outcomes / Must Know:

  • List and explain the three functions of money.
  • Define the money supply M1 and near monies M2.
  • State three reasons why currency and checkable deposits are money and why they have value.
  • Explain the relationship between the purchasing power of money and the amount of money in circulation.
  • Describe the structure of the U.S. banking system.
  • Explain why Federal Reserve Banks are central, quasi public, and bankers' banks.
  • Describe seven functions of the Federal Reserve System and point out which role is the most important.
  • Summarize and evaluate the arguments for and against the Federal Reserve System remaining an independent institution.
  • Describe the conditions that have caused the financial crisis of 2007 and 2008.
  • Explain the changes in the financial services industry since the financial crisis.
  • Define and identify terms and concepts listed at the end of the chapter.

Practice:

KEY GRAPHS

Extra Videos:

15a How Banks Create Money

Reading:

  • Chapter 15: ALL 

Videos:

Outcomes / Must Know:

  • Recount the story of how fractional reserves began with goldsmiths.
  • Explain the effects of a currency deposit in a checking account on the composition and size of the money supply.
  • Compute a bank's required and excess reserves when you are given its balance sheet figures.
  • Explain why a commercial bank is required to maintain a reserve and why it isn't sufficient to cover deposits.
  • Describe what happens to the money supply when a commercial bank makes a loan or buys securities.
  • Describe what happens to the money supply when a loan is repaid or a bank sells its securities.
  • Explain what happens to a commercial bank's reserves and checkable deposits after it has made a loan.
  • Describe how a check drawn on one commercial bank and deposited in another will affect the reserves and excess reserves in each bank after the check clears.
  • Describe what would happen to a single bank's reserves if it made loans that exceeded its excess reserves.
  • Explain how it is possible for the banking system to create an amount of money that is a multiple of its excess reserves when no single bank ever creates money greater than its excess reserves.
  • Compute the size of the monetary multiplier and the money creating potential of the banking system when provided with appropriate data.
  • Explain that the money multiplier process can also lead to multiple destruction of money.
  • Define and identify the terms and concepts at the end of the chapter.

Practice:

Extra Videos:

 

16a MP

Reading:

  • Chapter 16 ALL

     

     

Videos:

  • MJM 32 Monetary Policy (7:18)
    • NOTE: this is a simplistic introduction. The three ACDC Leadership videos below are much better
    • NOTE: when she discusses a CHANGE IN RESERVES she really means a change in EXCESS reserves (ER)
    • NOTE: she also does not discuss how a change in the required reserve ratio (r) not only changes the size of the multiplier, but it also changes the amount of excess reserves (ER)
  • Macro 4.1- Money Market and FED Tools (Monetary Policy) 5:20 [YouTube ACDCLeadership]
  • Macro 4.2- Monetary Policy and Aggregate Demand 3:21 (recessionary gap) [YouTube ACDCLeadership]
    • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDOf in class or Qf on the graphs below
  • Macro 4.3- Graphing Monetary Policy Practice (AP Macroeconomics) 2:44 (inflationary gap) [YouTube ACDCLeadership]
    • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDOf in class or Qf on the graphs below

Outcomes / Must Know:

  • Identify the goals of monetary policy.
  • Identify two types of demand for money and the main determinant of each.
  • Describe the relationship between GDP and the interest rate and each type of money demand.
  • Explain what is meant by equilibrium in the money market and the equilibrium rate of interest.
  • Explain the relationship between bond prices and the money market
  • List the principal assets and liabilities of the Federal Reserve Banks.
  • Explain how each of the four tools of monetary policy may be used by the Fed to expand and to contract the money supply.
  • Explain the relative importance of the monetary policy tools.
  • Describe how the Fed targets the Federal funds rate as part of its monetary policy actions.
  • Describe expansionary and restrictive monetary policies, and explain why and how they are used.
  • Explain the Taylor rule and describe how it relates to current Fed policy.
  • Explain the cause effect chain between monetary policy and changes in equilibrium GDP.
  • Demonstrate graphically the money market and how a change in the money supply will affect the interest rate.
  • Show the effects of interest rate changes on investment spending.
  • Describe the impact of changes in investment on aggregate demand and equilibrium GDP.
  • Contrast the effects of an expansionary monetary policy with the effects of a restrictive monetary policy.
  • List two strengths and three shortcomings of monetary policy.
  • Summarize the connections between AD-AS, the price level, real output, and stabilization (fiscal and monetary) policy.
  • Define and identify terms and concepts at the end of the chapter.

Practice:

KEY GRAPHS:

Extra Videos:

 

16b Other Macro Issues, Models

Reading:

  •  

Videos:

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Outcomes / Must Know:

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Practice:

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Extra Videos:

10a Multiplier

Reading:

  • Chapter 10 ALL

Videos:

Outcomes / Must Know:

  • Describe the income-consumption and income-saving relationships
  • Recognize, construct, and explain the consumption and saving schedules.
  • Identify the determinants of the location of the consumption and saving schedules.
  • Calculate and differentiate between the average and marginal propensities to consume (and save).
  • Describe the relationship between the interest rate, expected rate of return, and investment
  • Identify the determinants of investment and construct an investment demand curve.
  • Identify the factors that may cause a shift in the investment-demand curve.
  • Describe the reasons for the instability in investment spending.
  • Provide an intuitive explanation of the multiplier effect.
  • Calculate the multiplier and changes in real GDP given information about changes in spending and the marginal propensities.
  • Discuss why the actual multiplier may differ from the theoretical examples.
  • Define and identify terms and concepts at the end of the chapter.

Practice:

KEY GRAPHS

Extra Videos:

 

13a FP

Reading:

  • Chapter 13 ALL
  • PLUS Review Ch. 18 pp. 374-378 "Taxation and Aggregate Supply"

Videos:

  •  

Outcomes / Must Know:

  • Define and explain the role of the CEA.
  • Distinguish between discretionary and nondiscretionary fiscal policy.
  • Differentiate between expansionary and contractionary fiscal policy.
  • Recognize the conditions for recommending an expansionary or contractionary fiscal policy.
  • Explain expansionary fiscal policy and its effects on the economy and Federal budget.
  • Explain contractionary fiscal policy and its effects on the economy and Federal budget.
  • Give two examples of how built in stabilizers help eliminate recession or inflation.
  • Explain the differential impacts of progressive, proportional, and regressive taxes in terms of stabilization policy.
  • Explain the significance of the "cyclically-adjusted budget" concept.
  • Describe recent U.S. fiscal policy actions and the motivation behind them.
  • List three timing problems encountered with fiscal policy.
  • State political problems that limit effective fiscal policy.
  • Identify actions by households, and by state and local governments that can frustrate fiscal policy.
  • Define and identify terms and concepts at the end of the chapter.

Practice:

KEY GRAPHS

Extra Videos:

 

13b Other FP and Debt

Reading:

  • Chapter 13 ALL
  • PLUS Review Ch. 18 pp. 374-378 "Taxation and Aggregate Supply"

Videos:

  •  

Outcomes / Must Know:

  • Differentiate between deficit and debt.
  • State the relative size of the debt as a percentage of GDP and describe how that has changed in recent years.
  • Describe the annual interest charges on the debt, who holds the debt, and the impact of inflation on the debt.
  • Explain why the debt can also be considered public credit.
  • Identify and discuss two widely held myths about the public debt.
  • Explain the real or potential effect of the debt on income distribution, economic incentives, fiscal policy, and private investment
  • Explain and recognize graphically how crowding out is a concern caused by a large public debt.

Practice:

Extra Videos:

 

OTHER

VIDEO SOURCES:

YouTube ACDCLeadership Macroeconomics Videos

Many students like these videos. I believe that "Mr. Clifford " began making these videos for his AP Economics students. I have watched many, but not all, of these videos and I usually like the way that he covers the topics. He does go quite fast, so the videos may be better for review than for an initial introduction to the topics. Note that his "units" do not match our units and he may cover more than we do in some areas but not all that we do in other areas.

Macroeconomics Playlists

TOPICS / LESSONS: Click on lesson number for assignments.

Unit 1: ECONOMICS and GLOBALIZATION

  • 1a - Syllabus, Math Quiz,
  • 1b - 5Es
  • 1c - What is Economics, Models, BCA, Budget Lines
  • 1d - PPC
  • 2a - Globalization / Structural Adjustment
  • 3a - Demand
  • 3b - Supply
  • 3c - Market Equilibrium
  • 20a - Why we Trade: Comparative Advantage
  • 20b - International Trade
  • 5a - Role of Gov't, Gov't Finance
  • 5b - Market Failures

Unit 2: INTRODUCTION TO MACROECONOMICS

Unit 3: MACROECONOMIC POLICY

  • 14a - What is Money,Money Market Model, and the Fed
  • 15a - How Banks Creatre Money
  • 16a - Monetary Policy
  • 10a - Multiplier
  • 13a - Fiscal Policy
  • 13b - Other FP Issues and Debt
  • 16b - Other Macro Issues, Models