WEB PAGE: http://user.mc.net/~mhealy/eco212
OFFICE HOURS:
Mon.
Tue.
Wed.
Thur.
Fri.
Required:
Macro-Economics by Campbell R. McConnell and Stanley L.
Brue, (13th edition).
Study Guide to Accompany McConnell and Brue
Macro-Economics by Bingham and Walstad.
Almost every day we hear news reports of economic problems and successes from around the world. All over the world, countries are undertaking economic reforms (often called STRUCTURAL ADJUSTMENT POLICIES) that their leaders believe will provide their citizens with lower unemployment and higher living standards.
This course will cover the area of economics commonly defined as macroeconomics. The main goal of macroeconomics is to gain a better understanding of the causes of, and remedies for, UNEMPLOYMENT and INFLATION, as well as the factors that affect ECONOMIC GROWTH.
We will study these macroeconomic issues in an international context to try to understand the economic reforms many countries are undertaking.
The final grade for the class will be awarded according to the following point system:
TOTAL: 290 POINTS
Exams:
Students will be allowed to take an exam at a time other than the
scheduled class period IF:
1. the instructor is notified BEFORE the scheduled exam time
AND
2. the student has a very good reason to miss the exam at the
scheduled time.
Quizzes:
Since only four of the five quizzes will be included in the final point total, there should be little need to take a quiz at a time other than the scheduled class time.
Article Analysis Papers:
Papers, if handed in on time, can be rewritten. No rewrites, or papers, will be accepted after the dates announced in class.
UNIT 1
Part 1 Why is the World Moving to Capitalism?Ch. 23 Economies in Transition - An Introduction to the Global Economy
Ch. 4 What is Capitalism?
Ch 1, 2 Introduction to Efficiency and to the Study of EconomicsPart 2 How Capitalism Works
Ch. 3 Efficiency and Markets: Supply and Demand
Ch. 5 Efficiency, Equity, and the Role of Government
Ch. 6, 20 Efficiency, Specialization, and Exchange (Trade)EXAM 1
UNIT 2
Unemployment, Inflation, and Economic GrowthCh. 11 A Model of the Macro Economy: AS and AD
Ch. 8 Unemployment and Inflation
Ch. 7, 19 Economic Growth
Ch. 22 Growth and the Less Developed CountriesEXAM 2
UNIT 3
Fiscal and Monetary PolicyCh. 12 Fiscal Policy and the Multiplier Process
Ch. 13-15 Monetary Policy
Ch. 21 Exchange Rates and the Balance of PaymentsEXAM 3
Class attendance is strongly recommended, but not required. Former students have indicated that the material covered in class is very helpful at the time of the examinations.
(http://user.mc.net/~mhealy/eco212)
It is planned that lecture outlines, all overhead transparencies, and class handouts will be made available to students on the world wide web at the above address. Students without experience on the internet are advised to take a seminar offered by Harper's Learning Resource Center (library). More information will be provided in class.
This is a difficult course! There is an old rule of thumb concerning studying for college courses: on average students should study TWO hours for every ONE hour of class. This is an average, which means some courses require more study time and some less. You may find that economics requires MORE.
The following suggestions should help you learn economics:
The following dates are TARGETS only. THEY CAN BE CHANGED!. Any
changes will be announced in class at least one week before the
scheduled date of the quiz, exam, or paper and posted on the
internet. PAPER 1 Intro/Ch. 1, 4, 23 Tue., June 16 QUIZ 1 Intro/Ch. 1, 4, 23 Thur., June 18 PAPER 2 Supply and Demand Tue., June 22 QUIZ 2 Supply and Demand Thur., June 24 PAPER 3 Ch. 20/Trade Tue., June 30 QUIZ 3 Ch. 20/Trade Thur., July 2 EXAM 1 Unit 1 Tue., July 7 PAPER 4 AS / AD Thur., July 9 QUIZ 4 AS / AD Tue., July 14 EXAM 2 Unit 2 Thur., July 21 QUIZ 5 Fiscal Policy Tue., July 23 PAPER 5 Monetary Policy Thur., July 28 EXAM 3 Unit 3 Thur. July 30 FINAL EXAM Comprehensive Thur. July 30
All Papers will be an ANALYSIS of a newspaper article using the concepts, models (graphs), and vocabulary learned in class or from the textbook. Newspaper articles tell us what happened (or what will happen), economic analysis tells us HOW and WHY it happened. Do not just summarize the article, since it will be attached to your paper. You are to ANALYZE it and explain the economics behind what the article is saying. If graphs are included (and they must be used in at least three of the five papers) you MUST explain the graphs in detail in your paper. Tell the reader when to look at each graph, and explain what the graph is revealing about the issue.
Papers must be short and concise. Two pages of text should be more than adequate. Graphs could make the total paper length a little longer.
Grading and Rewrites
If the papers are handed in by the date due, then you may do as many rewrites as necessary until you receive full credit. If you hand the paper in late, you may still receive full credit but you may not do any rewrites.
Papers will only receive 1, 2, 3, or 10 points. A "1" means you must do a total rewrite with a new article. A "2" means you must do a total rewrite but you may use the same article or get a new one. A "3" means you do a partial rewrite. If you get 3 points, DO NOT REWRITE THE WHOLE PAPER even if it is easy for you to do so on your computer. Only rewrite the portions that are wrong or make the necessary additions.
ALL MACRO PAPERS MUST:
REWRITES:
PAPER 1 -- ECONOMIES IN TRANSITION
Find an article that discusses a country's structural adjustment program. Discuss the policies, the benefits, and the costs (or problems) associated with structural adjustment. In other words: What are they doing?; Why are they doing it (what are the positive effects) ?; and What negative effects might arise?
Find an article on an individual product or industry where there has been a CHANGE in the price or the quantity sold. (Example: "Price of Computers Continues to Drop";, "Natural Gas Prices Soar".) Use the non-price determinants of supply and/or demand to explain WHY the price or quantity has changed. the article must mention at least two non-price determinates. If the article mentions more than two than your analysis should include all the determinates mentioned. (Warning: a change in expected prices is NOT a common non-price determinate. Do not use it unless the article explicitly states that is was a factor.) Your analysis must include graphs of supply and demand curves shifting appropriately. There must be one graph that shows the end result of ALL shifts showing the correct changes in price and/or quantity.
PAPER 3 -- INTERNATIONAL TRADE: ITS COSTS AND BENEFITS
Find and article that discusses some of the effects of international trade. Analyze the arguments made in the article using the concepts discussed in class. Does economic theory support these arguments? What would most economists say in response to the article? What do YOU think about international trade?
PAPER 4 -- AGGREGATE SUPPLY AND AGGREGATE DEMAND
Find an article that discusses a change in the unemployment rate or the inflation rate of a country. Explain WHY the rates changed using the AS/AD model (graph). The article must include CHANGES in at least two determinates of aggregate supply and/or aggregate demand. Your graphs must show the effects of these changes on the level of output and the price level. Your discussion must explain how all of this result in the reported changes in unemployment and/or inflation.
Find an article that discusses monetary policy, preferably one that mentions one of the monetary policy tools. Show how the monetary policy makers can use this tool to affect the rates of unemployment, inflation, and/or economic growth using the transmission mechanism shown in figure 15-2 (p. 303) of your textbook.