COURSE DESCRIPTION Economic principles, aggregate income, output and employment; money, fiscal, and monetary policy.

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1 ECONOMICS (ECO) 2301 PRINCIPLES OF MACROECONOMICS COURSE SYLLABUS, Spring 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 (M W F) 09:00 09:50 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. Course Textbook Macroeconomics, Brief Edition, McConnell, Brue and Flynn, 2nd ed. 1

2 the bookstore in a loose-leaf package. At the bookstore, the textbook will appear as in the first picture with ASU name on the cover in addition to Principles of Macroeconomics name. (make sure to buy the macroeconomics package). Or the Textbook will have the following cover if planning on buying from an external source! Office Hours: M W F: 1:00pm 3:00pm. All other times are by appointment. 2

3 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 test 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. 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. 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 3

4 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 Links: HomePage/Announcements: Where all my announcements/communication regarding this course will be posted. Syllabus/Policies: Your detailed course outline, Student Lockdown Browser Instruction Sheet, and all other information are posted. Content/PowerPoint Slides: All class material, i.e., chapter by chapter PowerPoint slides and Lecture notes, will be posted here. Assignments: Four multiple-choice type assignments will be posted in BB. The Assignments link will have two folders; one is Assignment for printing: here, I will post a hard copy (pdf or a word document) of each assignment for you to print and to work on. Upon completion, make sure to return to BB and open the other folder, Assignment for submission to electronically submit all your answers PRIOR TO THE ASSIGNMENT DUE DATE AND TIME to obtain credit points. 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). THE ASSIGNMENT ANSWER KEY will be posted immediately after due date and time. Please do not wait until the last minute to work on your assignment. My advice to you is to do few questions at a time so you will not be overwhelmed on the due date and time. ASSIGNMENT ANSWER KEY will be posted in this folder immediately after due date and time. 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 4

5 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 (CT2). Course Outline Each topic is linked to a particular week. I reserve the right to drop/add topics if the course proceeds slower/faster than anticipated. Period 1: January 20 February 15 CHAPTER ONE: LIMITS, ALTERNATIVES, AND CHOICES (+ APPENDIX) Define economics and the features of the economic perspective Describe the role of economic theory in economics. Distinguish microeconomics from macroeconomics and positive economics from normative economics. List the categories of scarce resources and delineate the nature of the economizing problem. Apply production possibilities analysis, increasing opportunity costs, and economic growth. Explain how economic growth and international trade increase consumption possibilities. Chapter 1 Appendix: (Appendix) Understand graphs, curves, and slopes as they relate to economics. CHAPTER 2: THE MARKET SYSTEM AND THE CIRCULAR FLOW Differentiate between a command system and a market system. List main characteristics of the market system. Explain how the market system decides what to produce, how to produce it, and who obtains it. 5

6 Discuss how the market system adjusts to change and promotes progress. Describe the mechanics of the circular flow model. CHAPTER THREE: DEMAND, SUPPLY AND MARKET EQUILIBRIUM (+ APPENDIX) Describe demand and explain how it can change. Describe supply and explain how it can change. Relate how supply and demand interact to determine market equilibrium. Explain how changes in supply and demand affect equilibrium prices and quantities. Identify what government-set prices are and how they can cause product surpluses and shortages. (Appendix) Illustrate how supply and demand analysis can provide insights on actual-economy situations. Period 2: February 17 March 11 CHAPTER FIVE: GDP and ECONOMIC GROWTH Explain how gross domestic product (GDP) is defined and measured. Describe how economists distinguish between nominal GDP and real GDP. List two ways that economic growth is measured. Identify the general supply, demand, and efficiency forces that give rise to economic growth. Describe growth accounting and the specific factors accounting for economic growth in the United States. Explain why the trend rate of U.S. productivity growth has increased since the earlier period. Discuss differing perspectives as to whether growth is desirable and sustainable CHAPTER SIX: Business Cycles, Unemployment, and Inflation Describe the business cycle and its primary phases. Illustrate how unemployment and inflation are measured. Explain the types of unemployment and inflation and their various economic impacts. Period 3: March 21 April 11 CHAPTER SEVEN: AGGREGATE DEMAND AND AGGREGATE SUPPLY Define aggregate demand (AD) and explain the factors that cause it to change. Define aggregate supply (AS) and explain the factors that cause it to change. Discuss how AD and AS determine an economy's equilibrium price level and level of real GDP. Describe how the AD-AS model explains periods of demand-pull inflation, cost-push inflation, and recession. CHAPTER EIGHT: FISCAL POLICY, DEFICITS, AND DEBT 6

7 Identify and explain the purposes, tools, and limitations of fiscal policy. Explain the role of built-in stabilizers in dampening business cycles. Describe how the cyclically adjusted budget reveals the status of U.S. fiscal policy. Discuss the size, composition, and consequences of the U.S. public debt. CHAPTER NINE: MONEY, BANKING, and FINANCIAL INSTITUTIONS Identify and explain the functions of money and the components of the U.S. money supply. Describe what backs the money supply, making us willing to accept it as payment. Discuss the makeup of the Federal Reserve and the U.S. banking system. Identify the functions and responsibilities of the Federal Reserve. Identify and explain the main factors that contributed to the financial crisis of Discuss the actions of the U.S. Treasury that helped keep the banking and financial crisis of from worsening. Identify the main subsets of the financial services industry in the United States and provide examples of some firms in each category. Describe how banks create money in a fractional reserve banking system. Explain why there is a long-run fiscal imbalance in the Social Security system Period 4: April 14 May 09 CHAPTER TEN: INTEREST RATES AND MONETARY POLICY (If time Permits) Discuss how the equilibrium interest rate is determined in the market for money. List and explain the goals and tools of monetary policy. Describe the mechanisms by which monetary policy affects GDP and the price level. Discuss the effectiveness of monetary policy and its shortcomings. Describe how the Fed has used monetary policy in recent years to promote macroeconomic stability. CHAPTER TWELVE: INTERNATIONAL TRADE and EXCHANGE RATES List and discuss several key facts about U.S. international trade. Define comparative advantage and demonstrate how specialization and trade add to a nation's output. Explain how exchange rates are determined in currency markets. Analyze the validity of the most frequently presented arguments for protectionism. Discuss the role played by free-trade zones and the World Trade Organization (WTO) in promoting international trade. Grading Policies 1. Four online assignments are posted in BB. In addition to obtaining credit for completing these assignments, they are to help you learn the material and prepare you for each test. You have two attempts at each assignment and instant feedback will be provided upon completing your 1 st submission. 2. We will have four tests including the Final; each will consist of about multiple-choice 7

8 type questions. Due dates and number of points assigned to each test are provided. None of the tests are comprehensive. Grades are based on the above work as follows: Assignments Points Chapters Due Date & Time Assignment , 2, 3 2/12 by 10:00pm Assignment , 6 03/09 by 10:00pm Assignment , 8, 9 04/08 by 10:00pm Assignment , 12 05/06 by 10:00pm Chapters Date Test points 1, 2, 3 2/15 Test points 5, 6 03/11 Test points 7, 8, 9 04/11 Test 4 (Final Test) 150 points 10, 12 08:00am points each 400 Points (40%) Points each 600 Points (60%) TOTAL 1,000 points Angelo State University employs a letter grade system. Grades in this course are determined on a point scale: Grading policy: 900 points and up A B C D Below 600 F Note the following: 1. Your Tests (including the Final) are NOT comprehensive. 2. You are responsible for all material assigned. 3. Because of the way Assignments and tests 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 8

9 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 immediate dismissal from the course. Accommodations for Disability As stated in the Angelo State University Operating Policy and Procedure (OP Providing Accommodations for Students with Disabilities), the Student Life Office 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 contacting the Student Life Office at (325) or (325) (TDD/FAX) or by at Student.Life@angelo.edu to begin the process. The Student Life Office will establish the particular documentation requirements necessary for the various types of disabilities. Student absence for religious holidays 9

10 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 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: Good luck 10