Principles of Macroeconomics (Eco 103 LE)
North Shore Community College
Spring 2007
Syllabus
Professor: Moonsu Han
Office: Danvers/Berry 367-H
Lecture: 12:30pm - 1:20pm, M, W and F, MBTA LT131
Phone: 978-762-4000 ext. 5456
Office Hours: 11:30am - 12:30pm T and TH, 11:30am – 12:30pm M and W (LE 324 or Cafeteria in Lynn) and by appointment.
E-mail: mhan@northshore.edu and moon.econ@gmail.com
Course Description
The study of overall level of economic activity – output, employment, and prices – and the forces that shape that activity. Topics include: national income accounting; the role of consumption, saving, investment, and government spending; money and economic activity; the tools of public policy available which may be used to promote the macro goals of growth, full employment, and price stability; the different economic maps of reality that explain and shape our decisions about economic landscape. Fulfills open, liberal arts, and social science electives.
In other words, Eco 103 is designed to introduce you to the study of macroeconomics. Macroeconomics focuses on following issues: economic growth, unemployment, inflation, monetary and fiscal policies, and the relationship between the economy and the stock market. Lecture materials, readings, homework assignments and exams have been chosen to introduce you to: the vocabulary of economics with an emphasis on macroeconomics; some data and facts about the American and foreign economies; and alternative theories and viewpoints about macroeconomics. At the end of the course, you should have an understanding of the complex issues economists confront.
Required Text
We will use Hubbard and O’Brien’s Macroeconomics. Our Textbook is available in the North Shore Community College bookstore.
Instructional Objectives
As a result of this course, the students will:
Be able to understand and respond effectively to the uncertainties of a changing technological, social, and economic world.
Get the GNP, GDP, inflation, unemployment, economic growth, monetary and fiscal policies concepts integrated into each student’s way of thinking.
Be able to understand and to describe the nature and power of the market mechanism in whole domestic and international aspects.
Teaching Procedures
I’d like to emphasize two things, class participation and problem solving/application. Students will be expected to contribute by answering questions, asking questions, and making comments. You can participate/contribute during our classes or via e-mail. Students will be expected to solve suggested questions. Also I will provide hints first and answer key later. I will provide handouts to supplement lectures if necessary.
Course Requirements
There will be 4 homework assignments, 2 midterm exams, and a final exam. You are responsible for material covered in lecture as well as the assigned reading. Class attendance is mandatory and HIGHLY recommended.
Note: I expect you to work in my class. I suggest approximately three hours of outside study time for each hour of lecture. Due to the cumulative nature of the material please do not fall behind.
Attendance Policy
Students are responsible for all material covered in class as well as outside assignments: therefore, regular attendance is expected. Up to three absences are tolerated – except in the case of a documented medical/legal/personal emergency. Three points will be subtracted from your final average for every undocumented absence over the three which are permitted. On your 7th absence you will be assigned an “F” for the course unless you withdraw through the Registrar’s Office. However, before you decide to withdraw this class, please talk to me first. Because it is rude and distracts your classmates and the professor, tardiness is strongly discouraged, and students who arrived late to class should speak to me after class to be sure that they have been marked present.
Assignments
Assignments are due at the end of your class on the listed date to me. No late assignments will be accepted. Only documented special circumstances (i.e. illness) will exempt you from this rule. If you know in advance that you will not be able to hand in an assignment on time (i.e. you will miss class), you must speak to me before the assignment is due and hand it in early. I will drop your lowest homework score to allow for some flexibility. Thus you will have 3 assignments that count towards your final grade.
Note: I strongly suggest to type homework. Graphs and calculations may be handwritten. I suggest handwriting graphs as a form of practice for the exams.
Note: You must do your own work. Turning in identical homework will result in a zero for both parties. Similar homework will receive a warning the first time and a zero each additional time for both parties.
Grades
You have the opportunity to earn 5 scores of up to 100 points each as follows:
Homework(Recall that only your top 3 scores count)
Midterm Exam I
Midterm Exam II
Final Exam x 2
Your final exam counts twice as much as a single midterm or the homework.
The lowest of these five scores will be dropped and the remaining 4 will each count for 25% of your grade. Thus if your low score is the final, its weight will be halved (the final cannot be dropped entirely).
Grading Scale
%Grade
93-100A
90-92.9A-
87-89.9B+
83-86.9 B
80-82.9 B-
77-79.9 C+
73-76.9C
70-72.9 C-
67-69.9 D+
63-66.9D
60-62.9D-
Below 60F
I reserve the right to lower these cut-off points (i.e. increase the letter grades for percentages), but I will not raise the cut-off points (i.e. make it harder to get good grades).
Scholastic Dishonesty
For the purpose of this class, students may work together on homework provided the following rules are followed: Any collaboration MUST be noted at the end of your homework and each student must individually write up each homework assignment. Anyone committing scholastic dishonesty on an exam will receive an F for the class.
Schedule: (Subject to change)
DatesTopicsNotes
Jan. 22 (M)Introduction Syllabus, HW #1
Jan. 24 (W)Review of MicroeconomicsCh 1 - Ch 6
Jan. 26 (F)Measuring Total Production and IncomeCh 7
Jan. 29 (M)GDP CalculationCh 7
Jan. 31 (W)Real vs. Nominal GDPCh 7
Feb. 2 (F)UnemploymentCh 8
Feb. 5 (M)Consumer Price IndexCh 8
Feb. 7 (W)Effects of InflationCh 8
Feb. 9 (F)Economic GrowthCh 9
Feb. 12 (M)Market for Loanable FundsCh 9 HW #2 Assigned
Feb. 14 (W)Market for Loanable FundsCh 9
Feb. 16 (F)Long-Run Economic GrowthCh 10
Feb. 19 (M)President’s Day – No Class
Feb. 21 (W)Economic Growth in the U.S.Ch 10HW #2 Due
Feb. 23 (F)What Determines Economics GrowthCh 10
Feb. 26 (M)Catch-up/ReviewOver Chapters 7-10
Feb. 28 (W)Midterm IOver Chapters 7-10
Mar. 2 (F)Output and ExpenditureCh 11
Mar. 5 (M)Multiplier EffectCh 11
Mar. 7 (W)The Aggregate Demand CurveCh 11
Mar. 9 (F)AD and AS AnalysisCh 12
Mar. 12 (M)Aggregate SupplyCh 12
Mar. 14 (W)Macroeconomic EquilibriumCh 12
Mar. 16 (F)Evacuation Day – No class
Mar. 19 – Mar. 25Spring Break
Mar. 26 (M)Money and BanksCh 13
Mar. 28 (W)The Federal Reserve SystemCh 13
Mar. 30 (F)The Quantity Theory of MoneyCh 13 HW 3 Assigned
Apr. 2 (M)Monetary PolicyCh 14
Apr. 4 (W)Monetary Policy by FedCh 14
Apr. 6 (F)Catch-up HW 3 Due
Apr. 9 (M)ReviewOver Chapters 11-14
Apr. 11 (W)Midterm IIOver Chapters 11-14
DatesTopicsNotes
Apr. 13 (F)Fiscal PolicyCh 15
Apr. 16 (M)Patriot’s Day – No class
Apr. 18 (W)Fiscal Policy by GovernmentCh 15
Apr. 20 (F)Fiscal Policy by GovernmentCh 15
Apr. 23 (M)Inflation and UnemploymentCh 16
Apr. 25 (W)The Phillips CurveCh 16
Apr. 27 (F)Open EconomyCh 17 HW 4 Assigned
Apr. 30 (M)Foreign Exchange MarketCh 17
May2 (W)The Int’l Financial SystemCh 18
May4 (F)Current Exchange Rate SystemCh 18
May7 (M)Catch-up HW 4 Due
May9 (W)Review Over Chapters 15-18
May 11 (F)Final examOver Chapters 15-18
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