ECON 201 PRINCIPLES OF MACROECONOMICS
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1 ECON 201 PRINCIPLES OF MACROECONOMICS Instructor: Naveen Sarna, PhD (Economics) Office: 1106 D Morrill Hall, (301) Office hours: TR, 12:30PM -1:45 PM and by appointment Class Lectures: TuTh 3:30pm - 4:45pm TYD 0130 Discussion (Section F): 1:00PM 1:50PM First Class: Tuesday, January 26, 2016 Last Class: Tuesday, May 10, 2016 Spring Break: March 13-20, 2016 Final Exam: May 12-18, 2016, TYD 0130 Class TAs: Bryan Hardy, Feng Zhang, Yiqun Chen I. COURSE DESCRIPTION This course introduces students to the terminology and methods of analysis on national economies. Key issues include the determinants of inflation and unemployment; growth in output, standard of living, and productivity changes. The course would examine the economy over the long term; analyze short run fluctuations such as recessions; and the economic inter-dependence of nations. The objectives of the course are to (i) master a full set of economic terminology, (ii) learn to apply basic principles of analysis and explain macroeconomic outcomes, and (iii) knowledgably compare and contrast the policy options available to governments who try to influence those outcomes. To assist students understanding of this introductory course, more practical concepts and models will be discussed that have direct bearing in the understanding of real life macroeconomic outcomes facing the global economies today. All classroom discussions would involve Power Point presentations which would be posted on the class website. The course includes face to - face lectures, on line homework, discussions led by class teaching assistants and in class exams. The course will include a portfolio of multimedia to complement the class discussions. II. CLASS READING Required Text: N. Gregory Mankiw, Principles of Macroeconomics, 7 th edition, Thomson South-western, 2013 with Aplia. Aplia is an on-line package for homework and study aids. Information on options for purchasing the textbook and access to the on-line homework are posted 1
2 on the course website, along with instructions for registering to use Aplia. I would suggest waiting till after the first day of class before purchasing the textbook so that you have additional information available to you. Recommended reading on a regular basis: Macroeconomic issues from The Economist, The Wall Street Journal and Business Week. Instructor s Power point presentations and relevant articles and economic papers would be made available on the class Blackboard. You are expected to check the class BB on regular basis. III. PROPOSED WEEKLY CLASS SCHEDULE Week of: 1 January, 25 Topic and Reading Class Introduction and Principles of Economics Economic Models Circular Flow in the Economy and Production Possibility Frontier. Read Ch. 2 and Class notes 2 February, 1 The Market Forces of Demand and Supply and Market Failures Read Ch. 4 and Class notes Problem set #1 due Sunday February 7 by 10 PM 3 February, 8 Measuring Nation s Income and Measuring the Cost of Living Read Ch. 10, Ch. 11 and class notes Problem set #2 due Sunday February 14 by 10 PM 4 February, 15 5 February, 22 Unemployment and Production and Growth Read Ch. 15, Ch. 12 and class notes Saving, Investment and Financial System Read Ch. 13 and Class notes 6 February 29 The Monetary System and Money, Growth and Inflation Read Ch. 16 and 17 and class notes Review of the Exam Problem set #3 due Sunday March 6 by 10 PM 7 March 7 First Exam on March 10, 2016 Exam Discussion/ Solution Problem set #4 due Sunday March 13 by 10 PM 2
3 8 March 21 Spring Break - March 13- March 20, 2016 Open Economy Read Ch. 18 and 19 and class notes 9 March 28 Aggregate Demand and Aggregate Supply Read Ch. 20 and class notes Problem set # 5 due Sunday April 3 by 10 PM April 4 April 11 April 18 April 25 Aggregate Demand and Aggregate Supply (contd) Read Ch. 20 and class notes Problem set # 6 due Sunday April 10 by 10 PM Exam Review/ Mock Exam Second Class Exam on April 14, 2016 Exam discussion/solution Influence of Monetary and Fiscal Policy on Aggregate Demand Read Ch. 21 and class notes Short Run Trade-off between Inflation and Unemployment Read Ch. 22 Short Run Trade-off between Inflation and Unemployment (contd) Read Ch. 22 and class notes Problem set #7 due Sunday May 1 by 10 PM 14 May 2 and Final Thoughts and Review of the Final Exam May 9, Final Exam on May 12-18, 2016 TYD 0130 (Tentative) IV. SCHEDULE FOR DISCUSSION SECTIONS FOR CLASS: You may go to any TA for help with course assignments and course material. The discussion section will meet on Fridays at 1:00pm - 1:50pm in TYD 0130 Note: There will be no discussion sections during the first week of the semester. Discussion sections begin on February 5, Office hours and contact information for Teaching Assistants will be announced in class and on canvas. V. COURSE WEBSITE If you are registered for this course, you can use your directory ID and password to access Copies of this syllabus, lecture notes, and other relevant documents 3
4 will all be made available through the course website. I will use the BB to inform you of important announcements. Please note that failure to check the course website will not excuse a student from missing announcements or deadlines. VI. GENERAL CLASS ETIQUETTES AND EXPECTATIONS OF STUDENTS Please contribute to a positive learning environment. Students are expected to treat each other, the teaching assistants, and the instructor with courtesy and respect. Cell phones should be off or set to silent, and laptops in class should be used for taking notes, not for surfing the internet or for viewing entertainment. Disruptive behavior will be referred to the Office of Student Conduct or the Campus Police. Read the textbook carefully, and ask questions whenever you find something confusing or problematic. Attend lecture and discussion sections, and ask questions whenever you want more explanation. If you miss any lectures, you are still responsible for the material that was covered. I am always available to answer your questions in class or during office hours. Additionally feel free to contact me by if your question cannot wait till next class and I will do my best to respond within 36 hours. Make sure you also cc the class TA. You should include ECON201 in the subject line, so that I can quickly distinguish your message. I can respond more effectively if you include your name and any previous messages we ve exchanged within every message you send to me. Students are expected to treat each other with respect. Disruptive behavior of any kind will not be tolerated. Students who are unable to demonstrate civility with one another, the teaching assistants, or me will be subject to referral to the Office of Student Conduct or to the University Campus Police. You are expected to adhere to the Code of Student Conduct. Medical Excuses: In my class, you (student) or a guardian must me PRIOR to class to inform me that you will not be in attendance due to illness or injury thus will miss the class participation/homework/exam/paper deadline. On the very next class session that you are in attendance, you must present me with a self-signed note for missing. This note must include the date of illness and a statement that the information you have provided is true. You must also state that if your absence is found to be false, you understand that you will be referred to the Office of Student Conduct. The statement must be signed and dated. Do understand that only one self-signed note for one absence will be allowed. For non-consecutive absences or a major assignment/exam, I will require a Health Center or medical doctor s health excuse. If you do not inform me or if you do not present me with timely documentation, 0 points will be given to you for exam/paper. Any make-ups exams, if approved, will have to taken on next day, unless an alternative arrangement has been agreed with me. Students claiming excused absence must apply in writing, furnish documentary support for their assertion early and take instructor approval. University Emergency Closing: In the event that the University is closed for an emergency or extended period of time, I will communicate to you via or via class BB to indicate schedule adjustments, including rescheduling of examinations and assignments due to inclement weather and campus emergencies. Official closures and delays are announced on the campus website The snow phone line is SNOW, as well as local radio and TV 4
5 stations. Course Evaluations: The teaching staff looks forward to receiving your feedback on the course, both during and at the end of the semester. I take your course evaluation very seriously. Each year I revise my syllabus, course assignments and exam questions based on the feedback I receive on the course evaluation. I am not only interested in the scores that you give this class but I am also very interested in the specific comments you have about this course. I want to encourage each student in this class to evaluate not only my class but all of your classes. One important campus-wide evaluation is the online evaluation at the end of the semester. CourseEvalUM will be open to students to complete their evaluation for courses in April/ May Students can go directly to the website ( to complete their evaluations. I will make every effort to accommodate students who are registered with the Disability Support Service (DSS) Office and who provide me with a University of Maryland DSS Accommodation form which has been updated for the semester. Only written DSS documentation of the accommodation will be considered. This form must be presented to me no later than February 9, I am not able to accommodate students who are not registered with DSS or who provide me with documentation which has not been reviewed and approved by UM s DSS Office after this date The University of Maryland has a nationally recognized Code of Academic Integrity, administered by the Student Honor Council. This Code sets standards applicable to all undergraduate students, and you are responsible for upholding these standards as you complete assignments and take exams in this course. Please make yourself aware of the consequences of cheating, fabrication, facilitation, and plagiarism. For more information see If I observe what I believe is a violation of the Code of Academic Integrity, I will refer any and all students involved to the Student Honor Council. Technology Use in Class: In this class, students may bring their lap top to class to take notes only. If a student is found to be using a lap top for any other reason than taking notes, then, that student will lose the privilege of bringing his/her computer to class. All technological devices, except a lap top computer are prohibited in this class including MP3 devices, smart phones, phones,, gaming devices, etc. If these devices are seen and/or used during the class, the student will be asked to leave the class immediately. If these devices are seen and/or used during an exam, the exam will be collected from the student and the student will no longer be allowed to continue taking the exam. The exam score will be noted as 0 VII. COURSE REQUIREMENTS AND GRADES Your grade will be determined by your performance on homework and three exams. The dates of the exams are outlined in the proposed class schedule section listed below. Each exam and the sum of the homework contribute a specific weight to the calculation of your final grade. Final Grade: Two in Class Examination 40% Final Examination 35% 5
6 Problem sets (Aplia) 25% (5 highest scores graded worth 5% each) The format of exams is multiple choice and closed book use of notes and interaction with classmates are both prohibited. Each of the semester exams is worth 20% of your final grade. The final exam is worth 35% of your final grade. Do pay special attention to the due dates and times for the homework assignments in Aplia. These deadlines are listed below. There will be 7 weeks when homework assignments are due. I will drop the lowest 2 problem set scores from your grade computation, so if you miss 2 assignment sets, your homework grade will not suffer. The problem sets will be completed and submitted via Aplia. You must pay and register to use the Aplia system. It is the only way for you to submit your problem sets. If you have technical problems, contact the tech support at Aplia. If you have content questions about your problem sets, contact your teaching assistant or the professor. NO MAKE-UP PROBLEM SETS WILL BE GIVEN. Each of the five graded problem set is worth 5% of your grade except for the two lowest score, which will be dropped. If you miss one of these assignments, it will simply be the one dropped from your problem set grade. Problem set assignments will be available online using Aplia one week before the due date. NO MAKEUP OR TIME EXTENSION FOR MISSED APLIA HOMEWORK. DO NOT ASK. Final letter grades will be assigned according to the following system: A+ = 97+ A = A- = B+ = B = B- = D = C+ = C- = D+ = D- = C= F=below60 If you have questions or concerns about a grade awarded for any specific assignment, you must submit a written request for a grade review to me; send an that describes your concerns in detail. This request must be submitted within a week of the date when grades for that assignment are posted. TO RESPECT FAIRNESS IN CLASS GRADES NO EXTRA POINTS WILL BE GIVEN IF YOU ARE CLOSE TO NEXT GRADE LEVEL. SO PLEASE DO NOT ASK. ADDITIONALY: Department of Economics policy on grading requires instructors to use the grading system announced at the beginning of the semester in all cases and with no exceptions. To respect fairness to other students in class, there will be NO opportunities for any selective extra credit for this class. 6
COURSE LEARNING OUTCOMES Upon completion of this course, students should be able to:
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