MACROECONOMICS
SYLLABUS
INSTRUCTOR: Mark Healy
OFFICE: J260
PHONE: 925-6352 or 925-6311
TEXTS
Required:
Macro-Economics by Campbell R. McConnell and Stanley L. Brue, (12th edition).
Study Guide to Accompany McConnell and Brue Economics, by Walstad and Bingham.
Macroeconomics - A Lab Course by Norris Peterson.
COURSE DESCRIPTION
This course will cover the area of economics commonly defined as macroeconomics which is concerned with the national economy. The main goal of the course 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.
GRADING
The final grade for the class will be awarded according to the following point system:
3 unit exams (40 points each) 120 points
Final Exam (30 points from fourth unit
and 50 points COMPREHENSIVE) 80 points
Quizzes (4 quizzes, 10 points each,
only highest 3 counted) 30 points
4 Articles (short 1-2 page papers 40 points
Computer Lab Manual 30 points
TOTAL: 300 POINTS
Letter grades will be awarded as follows:
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 three of the four 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.
Articles:
Article analyses that are submitted by the due date can be rewritten as many times as necessary until the student is satisfied with the grade received. Students are warned that these papers , worth 10 points, can only receive scores of 3, 5, or 10. In other words, students receive either an F or an A.
Therefore it is important to finish the paper by the due date so that it can be rewritten.
Computer Lab Manual
The computer lab manual must be handed in when due to receive credit.
COURSE OUTLINE
Unit 1: An Introduction to Capitalism
(Note: These chapter titles DO NOT match those in the textbook.)
Ch. 2 -- What Is Economics
(plu pages 1-5, 9-17)
Computer Lab 1
Ch. 3 -- What Is Capitalism?
Computer Lab 2
Ch. 20 -- Specialization, Exchange, and Efficiency
(plus pages 76-78)
Ch. 4 -- The Importance of Prices.
(plus pages 78-85)
Ch. 23 -- What Is Not Capitalism?
Unit 2: Introduction to Macroeconomics: The Business Cycle
Ch. 6 -- Government finance (ONLY pages 96-102)
Ch. 9 -- A Model of the Macro Economy
Computer Lab 3
Ch. 7 -- Measuring the economy - GDP
Ch. 8 -- Unemployment and Inflation
Ch. 19 -- Economic Growth
Ch. 22 -- Economic Growth In The Less Developed Countries
Ch. 17 -- The Inflation-Unemployment Relationship
(This chapter may be included in unit 4.)
Computer Lab 10
Unit 3: Multipliers and Fiscal Policy
Ch. 10 -- Classical and Keynesian Theories of Employment
Computer Lab 4
Ch. 11 -- Keynesian Equilibrium and the Multiplier Concept
Computer Lab 5
Ch. 12 -- Fiscal Policy and More Multipliers
Computer Lab 6
Ch. 18 -- Deficits and Debts: So What?
Unit 4: Money and Monetary Policy
Ch. 13 -- What is Money?
Ch. 14 -- How Banks Create Money
Computer Lab 7
Ch. 15 -- Monetary Policy
Computer Lab 8
Ch. 16 -- Other Economic Views
Computer Lab 9
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.
ACADEMIC HONESTY POLICY(from the Harper Catalog 1993-1994, p. 26)"Harper college is strongly committed to the promotion of high ethical standards. Such standards can best be accomplished in an environment where honesty and integrity are practiced.For this reason the college strongly condemns academic dishonesty. Academic dishonesty includes, cheating, plagiarism or other improper appropriation of another's work as one's own, and falsifying records to advance one's academic standing.Cheating includes but is not limited to copying answers, stealing and/or disseminating tests or answer keys, using someone else's data in preparation of reports or assignments, and assisting others in such practices.Plagiarism involves the presentation of another person's words, ideas, or work as one's own. It includes but is not limited to copying any material (written or non-written) without proper acknowledgment of its source, and paraphrasing another's work or ideas without proper acknowledgment.""Any form of academic dishonesty as defined by the faculty member or department is a serious offense requiring disciplinary measures. Discipline for academic dishonesty involving a specific course shall be determined by the instructor of the course and may include failure of the specific assignment, project, or test or failure of the course. The student may appeal the instructor's decision in accordance with the College's Student Academic Complaint Procedures. In cases of academic dishonesty the faculty assigned grade supersedes a student-initiated withdrawal. In cases where disciplinary measures beyond course failure may be deemed appropriate by the instructor, or dishonesty that is not related to a specific course, the student may be disciplined in accordance with the Student Conduct Policy with the appropriate vice president involved in the decision."
Students caught plagiarizing will get no points on that article or lab.
Students caught cheating on an exam or quiz will get an "F" for the COURSE.
COMPUTER SOFTWARE
There are TWO IBM compatible (DOS) computer software packages to accompany this course. You will find both of them easy to use and very helpful.
Concept Master II is free with purchase of the textbook. Its contents and directions for use will be distributed in class.
Macroeconomics: A Lab Course must be purchased separately at the bookstore. It includes a lab manual with written exercises based on the computer program. The lab manual will be collected and graded periodically.
USING THE HARPER COMPUTER LAB -- J-245
If you do not have an IBM compatible computer at home, computers are available for student use in room J-245. Some students who have not had much experience with computers may find them quite intimidating. If you are such a student don't worry, these software programs are easy to use. Do not be afraid to ask for help.
To use the computers in the computer lab do the following:
1. bring in the disks and sign-in
2. put disk in drive (disk 1 for the tutorial Concept master)
3. the computer screen should have a list of options
use the arrow keys to highlight Applications,
press enter
4. highlight textbook, press enter
The disk should now boot up and all you have to do is follow the instructions on the screen.
Advice: If you get stuck, read the screen. Often there will be instructions.
LIBRARY RESERVE
The following items have been placed on reserve in the library to aid you in your studying. They can be checked out from the circulation desk for two hours at a time. Students caught stealing or damaging library reserve materials will be referred to the appropriate college authorities.
1. A textbook.
2. A study guide
3. Answers to the textbook end-of chapter questions (Instructor's Manual)
STUDY HINTS
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 will find that economics may require MORE.
The following suggestions should help you learn economics:
1. Use the textbook as a supplement to your class notes. Passive reading 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. Do problems. T here are plenty to do from your class notes, textbook, study guide, software, and class handouts.
3. See the instructor for assistance. This should be done EARLY in the semester. The Tutoring Center also offers help.
4. 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. Many students need to drop the class because they got behind.
5. Ask questions in class.
6. Take A LOT of notes in class. Most of the exam material will come from the class notes.
7. Try to APPLY the concepts learned in class to the "real world" including issues in the news and aspects of your personal life.
MACROECONOMICS
Summary of Important Dates
The folllowing 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.
QUIZ 1 ________________________________
LABS 1, 2 ________________________________
EXAM 1 ________________________________
ARTICLE 1 ________________________________
QUIZ 2 ________________________________
LABS 3, 10 ________________________________
EXAM 2 ________________________________
ARTICLE 2 ________________________________
QUIZ 3 ________________________________
LABS 4, 5, 6 ________________________________
EXAM 3 ________________________________
ARTICLE 3 ________________________________
QUIZ 4 ________________________________
LABS 7, 8, 9 ________________________________
FINAL EXAM ________________________________
ARTICLE 4 ________________________________
MACROECONOMICS
ARTICLE ANALYSIS INFORMATION
The purpose of the article analyses is to help you learn to make connections between theory and reality. This connection, of course, can be made, but it is not always a smooth one. For each unit you are to find an article in the popular press. You must make sure you have the right type of article , as well as an article that provides enough information. You may want to show your article to the instructor BEFORE you begin writing. Then you are to ANALYZE the article using the GRAPHS and DETERMINATES covered in a particular chapter (or chapters) in each unit.
Try not to spend too much time finding an article. DO NOT page through every section of the newspaper. Here are some suggestions on where you can look to find good articles quickly (especially for articles 2, 3, and 4):
The Wall Street Journal
front page, second column from the left
Mondays, second column from the right
page A2
first page of Marketplace Section (for article 1)
Business Week magazine
a section on cream colored paper called "Economic Outlook" (?)
U.S. News and World Report magazine
a section on cream colored paper called "Economic Outlook" (?)
Chicago Tribune (Business section)
USA Today (Money section)
The Christian Science Monitor
Infotrac (a computerized index in the library)
ARTICLE 1: SUPPLY AND DEMAND (Unit 1, Ch. 4)
Find an article on an INDIVIDUAL PRODUCT whose PRICE and QUANTITY SOLD has changed. Your analysis should indicate why the price and/or quantity has changed by noting which non-price determinates of demand or supply have changed. The article must mention at least TWO non-price determinates that have changed. If the article mentions more, then you must discuss them in your paper as well. Use supply and demand graphs to show changes in the equilibrium price and/or quantity. Clearly state what happened to the non-price determinates, what happened to supply and demand, and what happened to the price and quantity sold of the product as a result.
ARTICLE 2: AGGREGATE SUPPLY and DEMAND (Unit 2, Ch. 9)
Articles 2, 3, and 4 are very different from article 1. Now we will be discussing the WHOLE ECONOMY and we are looking for changes in unemployment (UE), inflation (IN), and economic growth (EG). for article 2 you must find an article that discusses a change in unemployment, inflation, or economic growth and include at least TWO non- price level determinates of aggregate demand and/or aggregate supply. Clearly explain what changes occurred to these determinates and what effect these changes had on UE, IN, and EG. Do this by using AS/AD graphs which show a change in equilibrium (like figure 9-6c).
ARTICLE 3: THE KEYNESIAN MODEL (Unit 3, Ch. 12, 13 14)
Your analysis of article 3 must include the Keynesian graph (see figure 12-2, page 226 of your textbook). Again, your goal is to explain changes in UE, IN, and EG. The article must include a change in CONSUMPTION or INVESTMENT and mention which determinate of consumption or investment (chapter 10, pp. 185 & 189) caused the change (only one determinate needed). The article may also mention changes in government spending and net exports, if so, incorporate those changes into your graph and analysis as well. Your graph must show the effect of theses changes and you must discuss what effect these changes had on UE, IN, and EG.
ARTICLE 4: MONETARY POLICY (Unit 4, Ch. 15)
The last article must mention a change in monetary policy by the Federal Reserve Board. Often articles will say the "Fed" changed the money supply, or changed interest rates. Actually, the Fed has three main TOOLS that it can use to change excess reserves in the banking system. This will encourage banks to make more or fewer loans which will affect the money supply and interest rates. Your article must mention WHICH TOOL the Fed has used to change the money supply, HOW they used that tool, and WHAT EFFECT it is expected to have on UE, IN, and EG. You will use a series of THREE GRAPHS to show all these changes (similar to figure 15-2 although the third graph may be the Keynesian graph).
ALL PAPERS MUST:
be typed
double spaced
include the article (neatly taped or Xeroxed onto a piece of typing paper)
include bibliographical data
include student's name and CLASS MEETING TIME
have NO plastic covers, etc.
be stapled in the upper left-hand corner
include graphs
graphs must be discussed IN THE PAPER
you must tell the reader when to refer to the graph
graphs WILL NOT contain numbered axes
exact data is not important, we are concerned with CHANGES
graphs must show CHANGES
Papers that are rewritten must be handed in with ALL previous drafts stapled together.
MACROECONOMICS
PREQUIZ
Answer the following questions as best you can. GUESS! Work in groups of two or three students. Be sure to learn the names of the students in your group.
1. What is the present rate of inflation in the U.S.? _________________
2. Is this HIGH, LOW or NEITHER? _________________
3. What is the present rate of unemployment in the U.S.? _________________
4. Is this HIGH, LOW or NEITHER? _________________
5. What is the annual rate of economic growth in the U.S.? _________________
6. Is this HIGH, LOW, or NEITHER? _________________
7. What is the value of all goods and services produced in the U.S. in one year?
GDP = $ _________________
(Which year?________________)
8. What is the largest expenditure catagory for the U.S. government?
(defense; interest; foreign aid; income security; education) _________________
9. From which country does the U.S. import the most? _________________
10. To which country does the U.S. export the most? _________________
11. If government spending increases, what happens to:
Unemployment? _________________
Inflation? _________________
Economic Growth? _________________
12. If the money supply increases causing lower interest rates, what happens to:
Unemployment? _________________
Inflation? _________________
Economic Growth? _________________