PRINCIPLES OF MACROECONOMICS
(ECON 1)
Spring ’05
Instructor : Meric Keskinel, Ph.D.
Telephone : (310) 660 37 39
Course website : http://www.elcamino.edu/faculty/mkeskinel
E-mail :
Class hours & place : 2:00 - 3:25pm, TTHSOCS 110
Office hours & place : 3:30 – 4:00pm, TTH & SOCS 103 - C
COURSE OUTLINE
* Course Description:
Macroeconomics is concerned with the economy as a whole and the relationships between broad economic indicators. The course will cover the aggregate economy: GDP, inflation, business cycles, unemployment, fiscal and monetary policies, economic growth, productivity, and the federal deficit.
The tools of macroeconomic analysis will be developed and applied to national economic problems facing the U.S. and other market-oriented economies. Contemporary macroeconomic problems including concern about the economy moving into a recession, economic growth rates, inflation, consumer spending and personal saving, fiscal policy, monetary policy, national debt and deficits, unemployment rates, international value of the dollar, and trade deficits will be discussed. Understanding underlying economic issues, economic policies and their probable consequences is a focal point of this course.
* Learning Goals
· Developing a rationale and criteria to evaluate the U.S. economic system.
· Developing awareness about news and issues related to the economy.
· Understanding theories that attempt to explain the health of the economy.
· Investigating government's role in the economy.
· Gaining an ability to analyze and predict future economic activity relevant to business decision-making.
· Becoming familiar with economic terminology, concepts and principles.
* Expected Outcome:
· Explain basic supply and demand in the marketplace.
· Define and demonstrate an understanding of basic macroeconomic terms, such as gross domestic product, unemployment, inflation, and economic growth.
· Differentiate between and explain fiscal and monetary policy.
· Use the aggregate supply and demand model to analyze the theoretical effect of fiscal and monetary policy on the economy.
· Demonstrate a basic understanding of some of the advanced issues in macroeconomic policy, such as the effects of expectations, the debate over the use of stabilization policy, and the significance of the national debt.
· Demonstrate a strong understanding of the current state of the U.S. economy and draw links between theory in the textbook and actual economic events.
* Required Text
The required text for the course is Macroeconomics by Robert E. Hall and Marc Lieberman (Thomson South-Western, 2004, 3rd Edition). ISBN: 0324260393. Topical handouts will also be provided. In addition, students are urged to read the Wall Street Journal, Financial Times, the Economist or Business Week to keep current on economic issues. The textbook and the study guide will be on two-hour reserve in the library.
The Hall / Lieberman Web Site. The authors of your textbook have a very useful web site located at http://hall-lieb.swcollege.com. Among other items, this web site contains explanations of key concepts, articles on current economic events, and interactive quizzes with feedback on correct answers for each chapter.
* Evaluation:
There will be four in – class examinations. The lowest of the four exams will be dropped. The exams consist of multiple choice and true false questions. For the exams, you will need to bring Scantron Form No. 882 – E. A study guide, practice quizzes, and lecture notes will be posted for each exam on the course website. The practice quizzes and assignments are provided as a learning aid for students and are designed to synthesize information from lecture, textbook and outside sources. Importantly, if you understand the assignments, you will likely do well on the exams. There will be grading curve for the class. Weight of each evaluation component is following
Top 3 Exams : 90% (30% each)
Assignments : 10%
* Course Contents:
/Topic
/Chapter
What is Economics? / 1Scarcity, Choice, and Economics Systems / 2
Supply and Demand / 3
Exam I (Covering Ch. 1 - 3)
What Macroeconomics Tries to Explain / 4
Production, Income, and Employment / 5
The Monetary System Prices, and Inflation / 6
Exam II (Covering Ch.4 - 6)
The Classical Long-Run Model / 7
Economic Growth and Rising Living Standards / 8
Economic Fluctuations / 9
The Short-Run Macro Model / 10
Exam III (Covering Ch. 7 – 10)
The Banking System / 11
The Money Market and the Interest Rate / 12
Aggregate Demand - Aggregate Supply / 13
Fiscal Policy: Taxes, Spending, and the Federal Budget / 15
Exchange Rates and Macroeconomic Policy / 16
Exam IV (Covering Ch. 11 – 13, 15, 16)
* Class Policies:
· Add/Drop and Incomplete Policy: You should comply with the ECC Policy for add-drop, withdraw, and incomplete procedures.
· Make-up Exam Policy: The exam may be made up only for “serious and compelling reasons” and provided that arrangements are made in advance.
· Plagiarism and Cheating Policy: Plagiarism in the homework and cheating in the exam will not be tolerated. The ECC policy applies to plagiarism and cheating.
* Provisions for Possible Syllabus Addenda or Revisions
There may be changes in the assignments and topics. Students are responsible for learning of any changes in the syllabus that are announced in class.
*Important Dates, Holidays, and Breaks
Washington’s Day Holiday Monday, Feb 21, 2005
Spring Recess, No Classes April 9 -15, 2005
Memorial Day Holiday Monday, May 30, 2005
Exam 1 (Ch. 1- 3) Tuesday, March 15, 2005
Exam 2 (Ch. 4 – 6) Tuesday, April 5, 2005
Exam 3 (Ch. 7 – 10) Tuesday, May 10, 2005
Exam 4 (Ch. 11 – 13, 15, 16) Tuesday, June 7, 2005
* Study Tips
· Read the chapter before class.
· Be sure to put effort into the homework assignments.
· Study daily.
· Ask questions.
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