ECONOMICS 4: Introductory
Macroeconomic Analysis
and Policy
This syllabus contains most of the information you will need to know about the organization of this course. Please read this document carefully and keep it handy throughout the semester.
Phone: 881-7477
Day/Period/Rm: T,Th 11:00-12:15pm, Rm 313 Woodland Bldg
Wm S. Brown, Principles of Macroeconomics, West Publishing, 1995. The Study Guide that accompanies the text will also be available. Economics Tutorial Software. This interactive tutorial software is tied to the core chapters of the text. The program requires the student to create, modify and interact with key graphs. The program is available on the network at the Computer lab, Rm 335 Woodland building.
Return to index.As an offering of the Economics curriculum, this introductory course is designed to acquaint the student with the necessary tools to understand the behavior of the economy in its aggregate form. Particular attention is given to the interaction between consumers, firms and the government. Consumer spending and saving habits are examined. Firm's investment and production decisions are studied. The government's role in stabilizing the economy and assuring economic growth is assessed. The effects of government policies on economic decisions of individuals and firms are explored in some detail. Issues such as inflation and unemployment are also examined along with the monetary and fiscal policies which have historically been used to influence them. The objectives of the course will be met through lectures, class discussion, assigned readings, quizzes and exams.
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| Assignments | ||
|---|---|---|
| 3 Quizzes | (10 points each) | = 30 points |
| 2 Midterm exams | (20 points each) | = 40 points |
| Final Exam | = 25 points | |
| Class participation | = 5 points | |
| MAXIMUM TOTAL = 100 points | ||
The letter grade equivalent to the number of points you accumulate will be determined according to the following schedule recommended by the Faculty Senate of the University:
| TOTAL NUMERIC SCORE | FINAL LETTER GRADE | = GRADE POINT AVERAGE |
|---|---|---|
| 93 - 100 | A | 4 |
| 90 - 92 | A - | 3.67 |
| 87 - 89 | B + | 3.33 |
| 83 - 86.9 | B | 3 |
| 80 - 82.9 | B - | 2.67 |
| 75 - 79 | C + | 2.33 |
| 70 - 74 | C | 2 |
| 60 - 69 | D | 1 |
| 59 or below | F | 0 |
No extra credit work will be assigned or accepted.
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You will be given a zero for each quiz or each exam not taken. A doctor's note or other verifiable proof of unavoidable absence is necessary to take a mid-term or final exam make-up. Make-up exams will be of an essay/problem-solving type. It is important to realize that regular attendance is necessary. The fact that classes are scheduled is clear evidence that the faculty believes class instruction is important and beneficial. In previous semesters students who had low attendance also did poorly on exams and quizzes. If you absent yourself from class, I am not responsible for explaining the material covered in the lecture in my office or over the telephone after the lecture is over. University policy regarding withdrawals and changes of program will be strictly adhered to.
Return to index.Class participation is worth a maximum of 5 points towards your final grade. You are encouraged to participate actively in class by answering questions that are asked, asking questions for clarification, raising issues that you feel are relevant. Those students who do participate actively and constructively in class will receive the full five points. Those who do not participate actively but who are consistently attentive and respectful of the instructor and of other students will receive at least 3 points. Others, especially those who are disruptive and disrespectful risk losing the full five points in this area from their final grade.
Return to index.Tutoring is free at The Learning Center located in Rm 315 Sutherland Building, Phone: 881-7538.
Return to index.1. Basic Economic Concepts and Techniques (Chapter 1)
A. What is Economics?
B. Tools of Economic Analysis: Marginal Analysis,
Ceteris paribus, Functional Relationships, Schedules
and Graphs.
2. The Economic Problem: Scarcity and Choice (Chapter 2)
A. The Production Possibility Curve
B. Changes in the Production Possibility Curve
3. Demand, Supply, and Market Equilibrium (Ch 3).
A. Markets Defined
B. Demand: Law of demand, the demand curve. Determinants
of demand. Changes in demand and quantity demanded.
C. Supply: Law of supply. The supply curve. Determinants
of supply, Changes in supply and quantity supplied.
D. Supply and Demand: Market Equilibrium and changes in
market equilibrium
4. The Institutional Framework (Chs 5 & 6).
A. The Private Sector
B. The Public Sector
C. The interconnections among the sectors
5. Measuring Aggregate Economic Activity (Chapter 7).
A. The GDP and its components
B. Fluctuations in economic activity: Business cycles,
unemployment and inflation
6. Background to Modern Macroeconomics (chapter 8).
A. Say's Law of Markets
B. Inventory adjustment, recessions and expansions
C. Macroeconomic equilibrium
D. Operations of the spending multiplier
7. The Income-Expenditure Model I: Closed Economy with no
Government (chapter 9) .
A. The Aggregate Expenditure Function: C, I
B. Equilibrium income and output
C. Changes in planned spending and the equilibrium
8. The Income-Expenditure Model II: Adding the Gov't and the
Foreign Sectors (chapter 10).
A. The GDP Gap: recessionary and inflationary gaps
B. Fiscal Policy: how to use fiscal policy to close
the GDP gaps
C. The Foreign sector
9. The Aggregate Demand-Aggregate Supply Model (chapter 11) .
A. The AD Curve: the shape of, and factors that shift
the AD curve
B. The AS curve: the shape of, and factors that shift
the AS curve
C. Applying the tools of AD and AS to help interpret U.S. economic history.
10. Money, Banking and the Federal Reserve (chapter 13).
A. The Evolution and functions of Money
B. Fractional Reserve Banking
C. How Banks create money
D. The Federal Reserve System
11. Monetary Theory (chapter 14).
A. A study of the linkage between money and the economy.
Will consider two approaches to the way money affects the economy:
- the Modern Quality Theory of Money and the Interest Rate Linkage Model.
12. International Trade (chapter 20)
.
A. The Growing International Sector in the U.S economy
B. Comparative Advantage and Gains from Trade
C. Trade Restrictions
P.S.
.
Please save your old tests until you are satisfied with
your final grade. This is a good idea in any class; it serves as
your "insurance" against improperly recorded grades.
Remember:
ABINGTON CAMPUS CLOSING CODE is 323 (Montgomery County)
or call 881-SNOW