COURSE DESCRIPTION Economic principles, aggregate income, output and employment; money, fiscal, and monetary policy.
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1 ECONOMICS (ECON) 2301 PRINCIPLES OF MACROECONOMICS COURSE SYLLABUS, FALL 2016 Faculty/Instructor Information Dr. Jamal G. Husein, Office: RAS 252 Phone: COURSE DESCRIPTION Economic principles, aggregate income, output and employment; money, fiscal, and monetary policy. COURSE OVERVIEW This course is an introductory macroeconomics course aimed at introducing you to the terminology, methodology and theory used by Economists. It will provide you with the basic knowledge about the national economy and help you understand terminology and methods applied. The course will also introduce you to the basic economic concepts and models used in (1) Understanding the functions & workings of the market system; (2) explaining and predicting the behavior of national output, unemployment and inflation; and (3) understanding monetary and fiscal policies and their impacts on the economy. Prerequisites: MATH 1302, or 1332, or 1324 or equivalent. It is assumed that these prerequisites are either met or cleared by instructor. Class Meeting Times: Class meets on Mondays, Wednesdays and Fridays (T R) 11:00 12:15 RAS 105. Technology: Must be able to retrieve materials from Blackboard and access online assignments. A student should also have a basic understanding of what a discussion forum is. Technical Support: The Technology Service Center (TSC) may be contacted by calling (325) or or by at helpdesk@angelo.edu Classroom Philosophy: To keep both the students and the professor focused on the material, the use of chewing tobacco, pagers, text messaging, Tablets and cellular phones are NOT ALLOWED in class. 1
2 Course Textbook MACRO ECON 5, Principles of Macroeconomics 5 th ed. Author: William A. McEACHERN the bookstore. Office Hours: M W: 10:00am 1:00pm. All other times are by appointment. and Communication: Always include subject and state which class and section you are in (instructors teach many classes/sections), title or name of the person you are writing to, content, and your name. The instructor will not respond to s that are not written in proper manners. I will respond within 12 hours of receiving your . I will also respond to your questions/inquiries posted in the discussion board within 12 hours of posting. Response Time Assignments grades will be available after the due date and time so check BB after to access your Exam and assignment results. Exams will normally be returned within 4 days or less. I will respond within 12 hours of receiving your /inquiry. Attendance Attendance will be taken every class meeting. All students are expected to attend every lecture and be punctual. Excellent attendance will contribute to your success and it will also encourage me to help you if you end up close to the boundaries of a particular grade. Other class rewards, if any, will also be based on excellent attendance. Classroom participation is not required but highly recommended. Missed/Late Work If you are unable to take an Exam for a valid reason, recognized by the university, such as illness or death in the family, a makeup exam will be scheduled. You will be required to produce documentary evidence to substantiate your claim. Any other excuse must be approved by telephone/ in advance. If no advance approval is given, there will be no make-up. 2
3 Online Assignments are automatically submitted as is at 10:00 pm on the due date. Any Assignment or part of it COMPLETED after due date and time will earn NO credit. There will be no makeup for a missed Assignment unless there is a valid reason recognized by the university. If there is a valid reason recognized by the University for missing an assignment, a make-up assignment may be arranged. Remember that I also DROP the lowest assignment at the end of the Semester. Writing Guidelines No writing is required in this course. BLACKBOARD (BB) Blackboard is the main website for this course. All assignments will be deployed and MUST be submitted via BB. Everyone should automatically be enrolled in BB. You should see our course as one of your courses on your homepage list. If you do not see our class, contact "Students Blackboard Technical Support". Course material (Chapter by chapter PowerPoint slides and Lecture Notes), grades and online assignments and other information are also found on the University s Blackboard. Go to and follow the instructions to "log-in", You should see "Principles of MACROECONOMICS as one of your courses o If you do not see our class, contact "Students BlackBoard Technical Support". When successfully logged in, you will see the following: HomePage/Announcements: Where all my announcements/communication regarding this course will be posted. ORINTATATION START HERE: Here you will find information on how to navigate the course Syllabus/Policies: Your detailed course outline, Student Lockdown Browser Instruction Sheet, and all other information are posted. My Professor: My general contact information. LESSONS & DISCUSSIONS LEARNING LESSONS: Here you ll see 4 links to our 4 main lessons/periods. 3
4 Within each LESSON, you ll find a link to Course Documents folder, Assignment Folder and an Exam Folder. 1. Course Documents: All class material, i.e., chapter by chapter PowerPoint slides and Lecture notes, will be posted here based on each lesson/period. Assignment Folder: This folder will have a link to Assignment for printing: a hard copy (pdf or a word document) of the assignment for you to print and to work on. Upon completion, make sure to return to BB and open the Assignment for Submission Link in the proper lesson/period to electronically submit all your answers PRIOR TO THE ASSIGNMENT DUE DATE AND TIME to obtain credit points (lockdown browser IS NOT required for assignment submission). You are allowed up to TWO attempts per Assignment. BB will give you instant feedback after the 1 st submission. The feedback will inform you of which questions you missed (hopefully, with the 2 nd submission you will be able to correct these questions and improve your assignment score). Each Assignment will consist of about multiple choice type questions and each assignment carries 100 points in total (or 10% of your final grade). Remember that the lowest score assignment out of the four taken will be dropped at the end of the Semester (Only the highest three assignment will be included in your final Grade), as such your final grade will not be impacted if you happen to miss ONE out of the four assignments. Please do not wait until the last minute to work on your assignment. My advice to you is to do few questions (on the printed copy that is) at a time so you will not be overwhelmed on the due date and time. ASSIGNMENT ANSWER KEY will be posted immediately after due date and time. CENGAGE 4LTR REGISTRATION: An additional and optional studying and learning resource provided to you by the textbook publisher, Cengage Learning. Your textbook comes bundled with an access code, click on this link (follow the prompts to register for your 4LTR resources) to register so you can have access to these additional learning tools. You only need to this once, afterwards when you click on this link, you ll be directed to CENGAGE 4LTER resources. After Registration and to learn more about CENGAGE 4LTR RESOURCES (STUDYBITS, FLASHCARDS, AND CONCEPT TRACKER) available to you, visit: SCROLL DOWN TO the bottom of the page and click: 4LTR Press Online...From Start to Finish! OR VIEW RECORDING. You only need to watch from 2:00 UNTIL 6:20. 4
5 TOOLS - the option to the class, your instructors, classmates, or any combination of the aforementioned. My Grades - You can view and calculate your current grade and see what you made on assignments. Media Gallery - A place to view media, if any, shared by your professor that is relevant to this course. RESOURCES Respondus LDB/Monitor Help - Guidelines, setup instructions and webcam test for this proctoring tool. Blackboard Help - External link with support for students using Blackboard. Accessibility Resources - Links to product accessibility information. Library Resources - Links to products and services offered by the ASU Library. Core Student Learning Outcomes By the end of this course students will be able to: Develop and demonstrate a logical position (i.e., perspective, thesis, and hypothesis) that acknowledges ambiguities or contradictions (CT2); Develop, interpret, and express ideas through effective written communication (CS1); Manipulate and analyze numerical data and arrive at an informed conclusion (EQS1) Demonstrate knowledge of civic responsibility (SR1). Course Objectives: By the end of the course, successful students should be able to: 1) Define economics, distinguish microeconomics from macroeconomics, positive economics from normative economics, and command system from a market system (CT1). 2) Perform supply and demand analysis to analyze the impact of economic events on markets (CS1). 3) Know, estimate and interpret measurements of critical variables of the national economy (EQS1, SR1). 4) Understand, analyze and evaluate factors determining the output and price level in the national economy (CT2). 5) Identify and explain the purpose, tools, and limitations of fiscal and monetary policies 5
6 (CT2). Course Outline/Lessons Each topic is linked to a particular week. I reserve the right to drop/add topics if the course proceeds slower/faster than anticipated. Lesson 1: August 29 September 22 CHAPTER ONE: The Art and science of Economic Analysis (+ APPENDIX) 1-1 Explain the economic problem of scarce resources and unlimited wants 1-2 Describe the forces that shape economic choices 1-3 Explain the relationship between economic theory and economic reality 1-4 Identify some pitfalls of economic analysis Describe several reasons to study economics and A1-1 Understand graphs, curves, and slopes as they relate to economics (APPENDIX) CHAPTER 2: TECONOMIC TOOLS AND ECONOMIC SYSTEMS 2-1 Describe the relationship between choice and opportunity cost 2-2 Explain how comparative advantage, specialization, and exchange affect economic out-comes (output) 2-3 Outline how economies function as production systems 2-4 Describe different economic systems and the decision-making rules that define them CHAPTER THREE: ECONOMIC DECISION MAKERS 3-1 Describe the major sources of income and expenditures for households 3-2 Outline the evolution of production over the centuries from the household to the modern corporation 3-3 Summarize the seven roles of government in the economy 3-4 Explain why countries trade with each other and why they sometimes act to restrict that trade CHAPTER THREE: DEMAND, SUPPLY, AND MARKETS 4-1 Explain why a demand curve slopes downward 4-2 Identify five things which could shift a demand curve to the right or left 4-3 Explain why a supply curve usually slopes upward 4-4 Identify five things which could shift a supply curve to the right or left 4-5 Explain why surpluses push prices down while shortages drive prices up 4-6 Predict the impact of a change in demand or supply on equilibrium price and quantity 4-7 Describe the result of a government-set price floor or price ceiling on a market EXAM 1: 9/22 Lesson 2: September 23 October 13 6
7 CHAPTER FIVE: INTRODUCTION TO MACROECONOMICS 5-1 Explain what's special about a national economy compared to regional, state, or local economies 5-2 Describe the phases of the business cycle 5-3 Explain the shapes of the aggregate demand curve and the aggregate supply curve, and how they interact to determine real GDP and the price level for a nation 5-4 Identify the five eras of the U.S economy, and describe briefly what went on during each CHAPTER SIX: TRACKING THE U.S. ECONOMY 6-1 Describe the two ways of computing GDP and explain why they are equivalent 6-2 Trace through the circular flow model, explaining each of the 10 steps along the way 6-3 Identify the limitations of the national income accounting system 6-4 Define a price index and explain why is it useful CHAPTER SEVEN: UNEMPLOYMENT AND INFLATION 7-1 Describe what the unemployment rate measures, and summarize four sources of unemployment 7-2 Outline the pros and cons of unemployment insurance 7-3 Define inflation and describe the two sources of inflation 7-4 Explain how unanticipated inflation harms some individuals and harms the economy as a whole CHAPTER 8: PRODUCTIVITY AND GROWTH 8-1 Describe how we measure labor productivity, and explain why is it important for a nation's standard of living 8-2 Summarize the history of U.S. labor productivity changes since World War II, and explain why these changes matter 8-3 Evaluate the evidence that technological change increases the unemployment rate EXAM 2: 10/13 Lesson 3: October 14 November 10 CHAPTER 9: AGGREGATE DEMAND 9-1 Explain what a consumption function illustrates and interpret its slope 9-2 Describe what can shift the consumption function up or down 9-3 Explain why investment varies more than consumption from year to year 9-4 Describe how the aggregate expenditure line determines the quantity of aggregate output demanded 9-5 Determine the simple spending multiplier and explain its relevance 9-6 Summarize the relationship between the aggregate expenditure line and the aggregate demand curve CHAPTER 10: AGGREGATE SUPPLY 10-1 Explain what determines the shape and position of the short-run aggregate supply curve 10-2 Describe the market forces that push the economy toward its potential output in the long run 10-3 Explain why shifts of the aggregate demand curve change the price level in the long run but do not change potential output 10-4 Summarize what can shift an economy s potential output in the long run CHAPTER EIGHT: FISCAL POLICY, DEFICITS, AND DEBT CHAPTER 11: FISCAL POLICY 7
8 11-1 Describe the discretionary fiscal policies to close a recessionary gap and an expansionary gap 11-2 Summarize fiscal policy from the Great Depression to stagflation 11-3 Identify some reasons why discretionary fiscal policy may not work very well 11-4 Summarize fiscal policy during the 1980s and 1990s. When and why did the federal budget show a surplus 11-5 Summarize fiscal policy during and after the Great RecessionCHAPTER NINE: MONEY, BANKING, and FINANCIAL INSTITUTIONS CHAPTER 12: FEDERAL BUDGETS AND PUBLIC POLICY 12-1 Summarize how federal spending priorities have changed since the 1960s 12-2 Explain why the federal budget has been in deficit in most years since the Great Depression 12-3 Outline what has happened to the federal debt in recent decades and how it compares with debt levels in other countries 12-4 Describe how a giant federal debt could have a negative impact on the economy EXAM 3: 11/10 Lesson 4: November 11 December 09 CHAPTER 13: MONEY AND THE FINANCIAL SYSTEM 13-1 Identify three functions of money and six qualities of the ideal money 13-2 Explain what is meant by a fractional reserve banking system 13-3 Describe the Fed, summarize its two mandated objectives, and outline some of its other goals 13-4 Describe subprime mortgages and the role they played in the financial crisis of 2008 CHAPTER 14: BANKING AND THE MONEY SUPPLY 14-1 Explain why using a debit card is like using cash, but using a credit card is not 14-2 Explain why a bank is in a better position to lend your savings than you are 14-3 Describe how banks create money 14-4 Summarize the Fed's tools of monetary policy CHAPTER 15: MONETARY THEORY AND POLICY 15-1 Explain how the demand and supply of money determine the market interest rate 15-2 Outline the steps between an increase in the money supply and an increase in equilibrium output 15-3 Describe the relevance of velocity's stability on monetary policy 15-4 Summarize the specific policies the Fed pursued during and after the Great Recession CHAPTER 16: MACRO POLICY DEBATE: ACTIVE OR PASSIVE? (If Time Permits) 16-1 Outline the difference between active policy and passive policy, and explain how the two approaches differ in their assumptions about how well the economy works on its own 16-2 Describe how expectations can influence the effectiveness of discretionary policy 16-3 Summarize why some economists prefer that policy be shaped by predictable rules rather than by the discretion of policy makers 16-4 Explain the shape of the short-run Phillips curve and the long-run Phillips curve Exam 4 (final) 10:30am 8
9 Grading Policies 1. Four online assignments are posted in BB. In addition to obtaining credit for completing these assignments (the highest three assignment scores that is!), they are to help you learn the material and prepare you for each Exam. You have two attempts at each assignment and instant feedback will be provided upon completing your 1 st submission. 2. We will have four Exams including the Final; each will consist of about multiple-choice type questions. Due dates and number of points assigned to each Exam are provided. None of the Exams are comprehensive. Grades are based on the above work as follows: Assignments Points Chapters Due Date & Time Assignment , 2, 3, 4 9/20 by 10:00pm Assignment , 6, 7, 8 10/11 by 10:00pm Assignment , 10, 11, 12 11/08 by 10:00pm Assignment , 14, 15, 16 12/09 by 10:00pm the lowest Assignment Score will be dropped at the end of the semester Chapters Date Exam points 1, 2, 3, 4 9/22 Exam points 5, 6, 7, 8 10/13 Exam points 9, 10, 11, 12 11/10 Exam 4 (Final Exam) 175 points 13, 14, 15, 16 10:30am points each 300 Points (30%) Points each 700 Points (70%) TOTAL 1,000 points Angelo State University employs a letter grade system. Grades in this course are determined on a point scale: 9
10 Grading policy: 900 points and up A B C D Below 600 F Note the following: 1. Your Exams (including the Final) are NOT comprehensive. 2. You are responsible for all material assigned. 3. Because of the way Assignments and Exams are weighted, it is critical that you do not slack off at the end. I dislike giving failing grades but not averse to doing so to students who do not learn the material. I will try my best to facilitate the learning process. In the final analysis, learning is your personal responsibility. Course Policies Academic Honesty and Integrity Angelo State University expects its students to maintain complete honesty and integrity in their academic pursuits. Students are responsible for understanding and complying with the university Academic Honor Code and the ASU Student Handbook. Angelo State University expects its students to maintain complete honesty and integrity in their academic pursuits. Students are responsible for understanding the Academic Honor Code, which is contained in both print and web versions of the Student Handbook. It is the professor s intention to be as fair and impartial as is humanly possible. Therefore, all students will be asked to adhere to the same set of guidelines and rules UNLESS there are disabilities or documented extenuating circumstances that have been discussed with the professor and the Student Life Office. Please make sure you inform the professor as soon as any situation arises. Do NOT wait until the problem is compounded by poor class performance, poor attendance, etc. Academic integrity is expected. This includes, but is not limited to, any form of cheating, plagiarism, unauthorized sharing of work, or unauthorized possession of course materials. The professor assumes that all students can be trusted. Please do not violate this trust. Violation of academic integrity will result in a failing grade for the course. Courtesy and Respect Courtesy and Respect are essential ingredients to this course. We respect each other's opinions and respect their point of view at all times while in our class sessions. The use of profanity & harassment of any form is strictly prohibited (Zero Tolerance), as are those remarks concerning one's ethnicity, life style, race (ethnicity), religion, etc., violations of these rules will result in 10
11 immediate dismissal from the course. Accommodations for Disability ASU is committed to the principle that no qualified individual with a disability shall, on the basis of disability, be excluded from participation in or be denied the benefits of the services, programs or activities of the university, or be subjected to discrimination by the university, as provided by the Americans with Disabilities Act of 1990 (ADA), the Americans with Disabilities Act Amendments of 2008 (ADAAA), and subsequent legislation. Student Affairs is the designated campus department charged with the responsibility of reviewing and authorizing requests for reasonable accommodations based on a disability, and it is the student s responsibility to initiate such a request by ing studentservices@angelo.edu, or by contacting: Mrs. Dallas Swafford Director of Student Development Office of Student Affairs University Center, Suite Office FAX Dallas.Swafford@angelo.edu. Student absence for religious holidays As stated in the Angelo State University Operating Policy and Procedure (OP Student Absence for Observance of Religious Holy Day), a student who intends to observe a religious holiday should make that intention known in writing to the instructor prior to the absence. A student who is absent from classes for the observance of a religious holy day shall be allowed to take an examination or complete an assignment scheduled for that day within a reasonable time after the absence. Course Drop To view information about how to drop this course or to calculate important dates relevant to dropping this course, you can visit Incomplete as a Course grade As stated in the Angelo State University Operating Policy and Procedure (OP Grading Procedures), the grade I is given when the student is unable to complete the course because of illness or personal misfortune. An I that is not removed before the end of the next long semester automatically becomes an F. A graduate student will be allowed one year to remove a grade of I before it automatically becomes an F. To graduate from ASU, a student must complete all I s. Grade Appeal Process As stated in the Angelo State University Operating Policy and Procedure (OP Student 11
12 Grade Grievances), a student who believes that he or she has not been held to appropriate academic standards as outlined in the class syllabus, equitable evaluation procedures, or appropriate grading, may appeal the final grade given in the course. The burden of proof is upon the student to demonstrate the appropriateness of the appeal. A student with a complaint about a grade is encouraged to first discuss the matter with the instructor. For complete details, including the responsibilities of the parties involved in the process and the number of days allowed for completing the steps in the process, see Operating Procedure at: College of Business Code of Ethics Students, faculty, administrators and professional staff of the College of Business should always: Be forthright and truthful in dealings with all stakeholders Take responsibility for one s actions and decisions Serve as an example of ethical decision-making and behavior to others Admit errors when they occur, without trying to conceal them Respect the basic dignity of others by treating them as one would wish to be treated Good luck 12
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