Economics 103 Section 2

Principles of Macroeconomics

Spring 2005

TR 10:00 – 11:15 am BEH 111

Instructor

Bernard Malamud Email:

Office: BEH 502 Phone: 895 –3294 FAX: 895 - 1354

Office Hours: TR 11:30 am – 12:30 pm, 2:30 – 3:30 pm

And by appointment

General Nature of the Course

Course objectives: An introduction to the study of the determination of the level of national income, employment and prices and the basic causes of fluctuations in these levels. This course will help you guide economic policy if you are ever elected to Congress or the presidency, intelligently advise those who are and, as an informed citizen, evaluate and anticipate what these officials are up to. The course gives you the tools and the confidence to grapple with a highly complex system (the macroeconomy), to understand how it works and how its performance can be affected by policy. The course also familiarizes you with the private and public, national and global, characteristics of today's economic world. We will relate the theories we study to economic events as they unfold throughout the semester.

Course Design: Our approach to learning in this course is LEARNING BY DOING. Each major topic we study will be introduced in a lecture that covers assigned readings in your textbook. Some class time, however, will be devoted to quizzes. Eight sessions will begin with a lecture followed by a 12-question quiz based on it and prior lectures. You will first take the quiz individually and then retake it working in a group, learning from and teaching your fellow group-members. You must read and think about assigned material before each class in order to perform well on the quiz and carry your weight in your group. The session will end with an instructor-led discussion of correct answers. In addition to these quizzes, there will be two 50 question exams and an 80 question final exam, all three of which you will take on your own, not in a group.

Text and Supplemental Readings

Required Text: William Boyes and Michael Melvin, Macroeconomics, Sixth Edition. Boston: Houghton Miflin, 2005.

Supplements:

The text’s website (practice test questions and links to valuable resources):

http://college.hmco.com/economics/boyes/economics/6e/macro/students/index.html Wall Street Journal (Available at student rates)

Business Week, The Economist, The Nightly Business Report

Examinations and Grading

Eight individual and group quizzes, two classroom exams, and a comprehensive final exam consisting of multiple choice and true/false questions will be given this semester. You must bring a Scantron to each quiz and exam. In addition, your group must have an additional Scantron for each quiz.

Your final grade will be based on your top six quiz scores, your scores on the classroom and final exams, and on your attendance. For each quiz, your score will be computed as the average of the score you earn on your own and your group's score. If you miss a quiz, your score will be zero. Group assignments made at the beginning of the semester will balance your three-member group by major, ECO 102 (202) grade, and credits earned to date. Reassignments may be made at mid-semester to account for withdrawals and absences: students who are consistently absent will be grouped together.

Your overall percentage score will be based on your quiz and exam scores as follows:

Top 6 Quizzes 72 points

Classroom Exam, March 1 50 points

Classroom Exam, Apr 19 50 points

Final Exam, May 10 80 points

Maximum overall score 252 points

In addition, your overall percentage score will be adjusted for attendance by one-half percentage point for every documented absence differing from three. Absences are “documented” by missed quizzes and exams, by failure to pick up quizzes and exams when they are returned to you, and by occasional attendance checks. The attendance adjusted percentage score on which your final grade will be based is then

Your overall percentage score on quizzes, classroom exams, and final

+ ( ½ percentage point ) x ( 3 – Documented absences).

Note: fewer than three documented absences will increase this percentage, more than three documented absences will decrease this percentage.

Approximate Final Grade Distribution

Attendance Adjusted

Percentage Score FINAL GRADE

87 percent Borderline A-

77 percent Borderline B-

67 percent Borderline C-

57 percent Borderline D-

Attendance and class participation will affect your final grade.

Makeup Policy

Makeup exams may be arranged at mutual convenience if you have a compelling reason to miss a scheduled classroom exam. A makeup exam must be taken before the missed exam is returned to the class. There will be no makeup quizzes or final.

Class Conduct

Your instructor and classmates deserve courtesy. If you must arrive late or leave early, do so quietly. Inform me beforehand if you must leave class early. Smoking and eating in class are prohibited. Disruptive behavior in class constitutes grounds for dismissal from the course. While this probably need not be said, anyone found engaging in any act of academic dishonesty will be punished in accordance with university policies.

Other Information
If you have a documented disability that may require assistance, you will need to contact Learning Enhancement Services for coordination of your academic accommodations. LES is located in the Reynolds Student Services Complex in Room 137. The LES phone number is 895-0866.

Web Resources

http://college.hmco.com/economics/boyes/economics/6e/macro/students/index.html (your text’s website) has a lot of valuable features, including multiple – choice study questions, news summaries, and links to other economics sites. My own website will have additional notes posted for you, including the powerpoint slides I use in lectures. Check it out at www.unlv.edu/faculty/bmalamud and follow links to Spring 2005 classes, ECON 103. In addition, you can always reach me with questions at .

Course Outline
Date /

Topics

/ Readings in
Text

Jan 18

Jan 20,25,27
Feb 1-10
Feb 15
Feb17,22,24
March 1
Mar 3-15
March 17
Mar 22,24
Mar 29,31
April 5,7
April 12,14
April 19
April 21
April 26
April 28
May 3
May 5
May 10 / Course organization and economic foundations
Economic Structure
Private Sector, International Sector, Public Sector
Jan 27: Quiz 1, Chapters 4,5
Macro Measures: Domestic and International
Output and Income, Nominal and Real Values, Price Indexes, Exchange Rates, and Balance of Payments
Feb 10: Quiz 2, Chapters 6,7
Macro Distress
Unemployment, Inflation
Macro Equilibrium
Aggregate Demand, Aggregate Supply
Feb 24: Quiz 3, Chapters 8,9
Classroom Examination, Chapters 4 – 9, 50 points
Spending, Income, and Demand Side Equilibrium
Consumption, Saving, Investment and the Multiplier
Mar 15: Quiz 4, Chapters 10,11
Fiscal Policy
Spending, Taxing, Deficits, and Debt
Spring Recess
Money
Functions/Flavors; Banking, Credit & Deposit Multiplier
Mar 31: Quiz 5, Chapters 12,13
Monetary Policy
Central Banks, Their Tools, and Money Markets
Apr 7: Quiz 6, Chapter 14
Macroeconomic Policy: Tradeoffs and Business Cycles
Phillips Curve(s), “Natural Rate”, Expectations and Outcomes
Apr 14: Quiz 7, Chapter 15
Classroom Examination, Chapters 10 – 15, 50 points
Macro Viewpoints: New Keynesian, Monetarist, New Classical
Economic Growth: Resources, Technology, Productivity
Economic Development: Obstacles, Strategies, Transition
Apr 28: Quiz 8, Chapters 16,17,18
Globalization: Controversy, Progress, Retreat
Catch-up and Review
Comprehensive Final Examination, 80 points, 10:10 am / Chapters 4,5
Chapters 6,7
Chapter 8
Chapter 9
Chapters 10,11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19