ECO 212 - SYLLABUS

MACROECONOMICS IN THE GLOBAL ECONOMY

[General Information] [Texts] [Course Description] [Grading] [Make-up Policy] [Course Outline] [Attendance Policy] [Class Web Page] [How to Pass Economics] [ Summary of Important Dates] [Article Analysis Papers]

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General Information

WEB PAGE: http://user.mc.net/~mhealy/eco212

OFFICE HOURS:

Mon. 7-8:00 am; 12-1:00 pm
Tue.
Wed. 7-8:00 am; 12-1:00 pm
Thur.
Fri. 7-8:00 am; 12-5:00 pm

TEXTS

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.

COURSE DESCRIPTION

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.

GRADING

The final grade for the class will be awarded according to the following point system:

Letter grades: 90%=A, 80%=B, 70%=C, 60%=D, below 60%=F

MAKE-UP POLICY

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.

COURSE OUTLINE

MACROECONOMICS IN THE GLOBAL ECONOMY

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 Economics

Part 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 Growth
Ch. 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 Countries

EXAM 2

UNIT 3

Fiscal and Monetary Policy
Ch. 12 Fiscal Policy and the Multiplier Process
Ch. 13-15 Monetary Policy
Ch. 21 Exchange Rates and the Balance of Payments

EXAM 3

NOTE: This outline may be changed! Regular class attendance is needed since changes will be announced in class.

ATTENDANCE POLICY

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.

CLASS WEB PAGE

(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. More information will be provided in class.

HOW TO PASS ECONOMICS

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:

  1. Passive reading of the textbook is not very helpful. Read with a pen in your hand and a notebook on which to list, repeat, copy, calculate, etc. ALSO, pay close attention to the TABLES and GRAPHS. THEY ARE IMPORTANT.
  2. Attend class. Your instructor will review the material from the textbook, add additional material, and answer questions. Come to class with your questions and problems. While in class TAKE NOTES and lots of them! We will go fast. If you want something repeated, ASK.
  3. Do problems. The internet site will list the problems from the textbook and Study Guide that you are responsible for in each unit. DO THEM ALL. If you can't do a problem ask about it in class or you will do poorly on the quizzes and exams.
  4. When doing the multiple choice questions in the Study Guide, it is suggested that you do NOT circle the answers in the book. Rather, write the letter of the answer that you selected on a separate sheet of paper. There are two reasons for doing this: (1) it is easier to grade them since all answers are listed together at the end of the Study Guide chapters, and (2) by not writing in the study guide you can go over the questions again and again without having the correct (or incorrect) answers already marked.
  5. See the instructor for assistance. This should be done EARLY in the semester. The Tutoring Center also offers help.
  6. Keep up. It is easy to get behind. To get a good grade you will have to devote a significant amount of out of class time to studying economics. If you get behind there simply will not be enough time.
  7. Try to APPLY the concepts learned in class to the "real world" including issues in the news and aspects of your personal life.

 

Summary of Important Dates

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 -- Monday, Feb. 2 -- Intro/Ch. 1, 4, 23 ____________________

QUIZ 1 -- Monday, Feb. 9 -- Intro/Ch. 1, 4, 23 ____________________

PAPER 2 -- Friday, Feb. 13 -- Supply and Demand ____________________

QUIZ 2 -- Wed, Feb. 25 -- Ch. 3 ____________________

PAPER 3 -- Monday, Mar. 2 -- Trade ____________________

QUIZ 3 -- Wednesday, March 4 -- Ch. 20/Trade ____________________

EXAM 1 -- Monday, March 9 -- Unit 1 ____________________

PAPER 4 -- Friday, March 20 -- AS-AD ____________________

QUIZ 4 -- Friday, March 27 -- Ch. 11 / AS-AD ____________________

EXAM 2 -- Friday, April 17 -- Unit 2 ____________________

QUIZ 5 -- Friday, May 8 -- Fiscal Policy ____________________

PAPER 5 -- Friday, May 15 -- Monetary Policy ____________________

EXAM 3 -- Friday May 15 -- Unit 3 ____________________

FINAL EXAM -- May 18 & 20 -- Comprehensive ____________________

ARTICLE ANALYSIS PAPERS

[Paper 1] [Paper 2] [Paper 3] [Paper 4] [Paper 5]

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?

PAPER 2 -- SUPPLY AND DEMAND

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.

PAPER 5 -- MONETARY POLICY

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.