Instructor: Dr. Mushfiq Swaleheen, Associate Professor. Office: Lutgert Hall 3306

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1 1 Department of Economics and Finance Lutgert College of Business ECO Principles of Macroeconomics Fall 2012 CRN Monday & Wednesday AM PM Lutgert Hall, 2202 Instructor: Dr. Mushfiq Swaleheen, Associate Professor. Office: Lutgert Hall Phone: Office Hours: M, W:12.15 PM 1.45 PM T AM 1.00 PM and by appointment. TEXTBOOKS and CALCULATOR: Required: Macroeconomics, 4th Edition by Hubbard & O'Brien MyEconLab Student Access (from Pearson Education) 5 Scantron sheets Texas Instruments BA2+ Calculator Recommended: Study Guide for Macro by Hubbard PREREQUISITES MAC 1105 Minimum Grade of C ECO 2023 (Principles of Microeconomics) Minimum Grade of C FGCU CATALOG COURSE DESCRIPTION Macroeconomics includes fundamental relationships in the aggregate or macroeconomy, basic measures, uses and limitations of macro activity. Public policy goals and alternative policy proposals regarding, inflation, economic growth unemployment and scarcity. Three credit hours. LINKS WITH OTHER BUSINESS COURSES: This is a foundations course that introduces students to the aggregate national economies and international exchange. This course addresses major economic indicators and the business cycle along with the effects of monetary policy in the monetary authority on business activity. It focuses primarily on the national, aggregated economy and includes the relationship of the national economy to international market environments. The skills and knowledge developed in these courses inform significant structural components of managerial accounting, finance, marketing and management. Subsequent courses that draw significantly upon these foundational economic concepts include: Business Common Core FIN 3403 Business Finance, MAR 3023 Introduction to Marketing, and GEB 4890 Business Strategy Accounting ACG Financial reporting & Analysis I, ACG Financial reporting & Analysis II, ACG Cost Accounting, and ACG 3401 Accounting Information Systems Finance FIN 3244 Money & Capital Markets, ECO 3201 Intermediate Price Theory, FIN 3414 Financial Management, FIN 3504 Principles of Investments, FIN 4514 Security Analysis and the QMB 3200 Economic * Business Statistics II Marketing MAR 3503 Consumer Behavior, MAR 3613 Marketing Research, and MAR 4804 Marketing Strategy. Management MAN 3303 Management of Small Business, GEB Business Strategy, MAN 4804 Business Plan Development

2 2 LINKS WITH LCOB GOALS AND LEARNING OUTCOMES LCOB Learning goals Learning outcomes for ECO 2013 (EAGLES) Assessment EFFECTIVE communication Share knowledge through group discussions. Show competence in written communication. ANALYTICAL & critical thinking Measure aggregate economic performance. Explain and calculate the key measures of the macroeconomy, including: GDP and its components, real vs. nominal values, unemployment, and inflation. Exams and online homework. Develop the aggregate supply and demand model. Develop the AD-AS model and utilize to discuss potential GDP, economic growth and productivity, determinants and components of AS and AD, income and expenditure approaches to GDP, and the multiplier effect. Analyze money and financial markets. Describe money, money creation, and financial institutions. Evaluate monetary and fiscal policies; discuss policy debates and applications. Identify and explain tools of monetary policy and automatic and discretionary fiscal policies. Discuss policy lags and limitations, rules vs. discretion, long run versus short run, expectations, and sources of macroeconomic instability. Consider the integrated GLOBAL business environment & its challenges & opportunities. Examine the international economy. Describe the basis of trade, the balance of payments and exchange rate systems. Exams online homework Value the significance of ETHICAL & LEGAL issues in business

3 3 Understand the ENVIRONMENTAL impact of business. Understand the relationship between the environment and economic growth and how the environment is accounted for when considering the aggregate economy. Exams and online homework. Possess necessary SKILLS across business disciplines Calculate the aggregate production of goods and services, unemployment and the general price level. Explain the difference between nominal and real values. Explain comparative advantage as a basis for trade and the key features of the current international rate system. Exams and online homework. GRADE BREAKDOWN Item Maximum points Online homework 150 Inclass work and participation 50 Exams First 150 Second 150 Third 150 Final (cumulative) 350 My grading scale is as follows: A B A C B B C D D D F 599 and below Grades will be assigned purely on the basis of performance. There are no extra credit assignments and your particular situation relating to graduation, scholarship, work, financial aid, work etc., has no bearing on grading. A grade of incomplete may be given out in case of unforeseen emergencies, according to my discretion and in accordance with FGCU guidelines. Poor performance during the semester is not a valid reason for an incomplete. COMMUNICATION: I will make announcements during class and periodically communicate with the class via CRN at eagle.fgcu and Angel. If you do not have an eagle account you need to establish one. Grades for the first, second and third exam will be communicated via Angel. HOMEWORK ASSIGNMENTS: Online homework assignments will be posted in myeconlab. Generally, there will be one homework from each chapter. You will not be able to submit a homework after the due date and time. In addition to access to the required graded homework assignments, you will also have access to practice homework assignments and other learning tools. See below for instructions on registering with myeconlab.

4 4 If you would like, you may work in groups of 2-4 people to discuss the problem sets. However, you must write up answers individually. Be aware that the University s policies relating to academic honesty will be enforced fully. Late homework: A homework posted in myeconlab will have a designated submission deadline. You will not be able to submit an online homework after the submission deadline has expired. Homework submitted after due date/time will not be graded and will receive a zero. INCLASS WORK & PARTICIPATION Inclass work will be handed out from time to time and you will have to be present to receive a grade. There will be no makeup for missed inclass work. ATTENDANCE POLICY I will take attendance in the class. However, if you miss a class or classes there is no penalty. This freedom given to you has several associated responsibilities: You will not be late and not leave early; and, when in the classroom you will concentrate on learning and nothing else. EXAMINATIONS The exams will be closed books and will consist of multiple-choice questions. There will be three exams during the semester plus one comprehensive final. Specific dates are noted on the course schedule below. All examinations will be held in the classroom for the course. You will need only a pencil, an eraser, a Texas Instruments BA2+ calculator, and a Scantron form for all exams (two scantron sheets for the final). MISSED EXAM There will be NO make-up exams. If you encounter a (documented) medical or family emergency and are unable to take an examination, you must notify me prior to or during the examination by phone or . If you simply do not show up, you will earn a grade of zero. However, if you provide acceptable written documentation, the weight of the final examination will be adjusted by the weight of the missed examination. This grade adjustment option can be used for one in-class examination only. It cannot be used for the final exam. APPROPRIATE CLASSROOM BEHAVIOR 1. Laptops and cell phones are not to be used in the classroom. They are a distraction to me and your classmates. 2. Please treat myself and your classmates with appropriate respect. 3. I will be in the classroom on time, and I would appreciate it if you are also. 4. In addition, I will not leave in the middle of a lecture and it is poor form for you to do so. 5. If you want to bring your textbook to class that is fine, other than that please do not read outside material in class (this includes newspapers, magazines, and any book you are reading that you just can t put down). 6. One last note, if you want to talk on a non-class discussion related matter do it on your time. I will not tolerate students being disruptive in the classroom. Inappropriate behavior will lead to deductions from in-class work and participation points at my discretion. UNIVERSITY STATEMENTS Academic Behavior Standards and Academic Dishonesty: All students are expected to demonstrate honesty in their academic pursuits. The university policies regarding issues of honesty can be found in the FGCU Student Guidebook under the Student Code of Conduct and Policies and Procedures sections. All students are expected to study this document which outlines their

5 responsibilities and consequences for violations of the policy. The FGCU Student Guidebook is available online at Disability Accommodations Services: Florida Gulf Coast University, in accordance with the Americans with Disabilities Act and the university s guiding principles, will provide classroom and academic accommodations to students with documented disabilities. If you need to request an accommodation in this class due to a disability, or you suspect that your academic performance is affected by a disability, please contact the Office of Adaptive Services. The Office of Adaptive Services is located in Howard Hall 137. The phone number is or TTY Student Observance of Religious Holidays: All students at Florida Gulf Coast University have a right to expect that the University will reasonably accommodate their religious observances, practices, and beliefs. Students, upon prior notification to their instructors, shall be excused from class or other scheduled academic activity to observe a religious holy day of their faith. Students shall be permitted a reasonable amount of time to make up the material or activities covered in their absence. Students shall not be penalized due to absence from class or other scheduled academic activity because of religious observances. Where practicable, major examinations, major assignments, and University ceremonies will not be scheduled on a major religious holy day. A student who is to be excused from class for a religious observance is not required to provide a second party certification of the reason for the absence. GENERAL EDUCATION PROGRAM - This course qualifies as a General Education course in the Social Sciences subject area. The economic way of thinking relies heavily on the usage of critical thinking skills (the ability to link data, knowledge, and insight to make better decisions). Critical thinking is one of the four General Education competencies. All General Education courses are required to have a plan for assessing their students performance on at least one of those four competencies. To meet that requirement, there will be several questions on your final exam designed to assess your critical thinking skills. Those questions will be directly related to the economics content covered in your textbook and in class lectures. 5 SCHEDULE OF DISCUSSION 1 Week 1: August 20 August 26 Measuring aggregate performance 8 Week 2: August 27 September 2 Measuring aggregate performance 8 Unemployment and inflation 9 Week 3: September 3 September 9 Economic growth, the financial system and business cycles 10 Week 4: September 10 September 16 Economic growth, the financial system and business cycles 10 Output and expenditure in the short run 12 Week 5: September 17 September 23 Exam 1(Monday, Sept 17) 8, 9, 10, 12 Aggregate demand 13 Week 6: September 24 September 30 Aggregate supply 13 (Static) Equilibrium in the short run and the long run 13 Week 7: October 1 October 7 1 This schedule is tentative and subject to change

6 6 A dynamic model 13 Week 8: October 8 October 14 What is money, how is it measured and how banks create money 14 The Federal Reserve System and the quantity theory of money 14 Week 9: October 15 October 21 Monetary policy 15 Week 10: October 22 October 28 Fiscal policy 16 Week 11: October 29 November 4 Exam 2 (Oct. 29, Monday) 13, 14, 15, 16 November 2 is last day to drop/withdraw without academic penalty Professor A.W. Phillips discovery 17 Week 12: November 5 November 11 Is there a short run trade-off between inflation and unemployment 17 Monetary policy, expectations and Phillips curve in the long run 17 Week 13: November 12 November 18 Comparative advantage and gains from trade 7 The balance of payments 18 Week 14: November 19 November 25 The balance of payments 18 Week 15: November 26 December 2 The foreign exchange market and exchange rates 18 Week 16: December 3 Exam 3 (Dec 3, Monday) 6, 16, 17 December 10, 2012 (10.30 am) Cumulative final IMPORTANT DATES Monday, September 3: Labor Day (No Classes) Monday, September 17: Exam 1 Monday, October 29: Exam 2 Friday, November 2: Last day to withdraw without academic penalty. Monday, December 3: Exam 3 Monday, December 10: Final Examination

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