MACROECONOMICS NUMBER OF CREDITS

MACROECONOMICS NUMBER OF CREDITS

SYLLABUS
Course No: ECO 100 (online) Date:
Title: Macroeconomics Number of Credits: 3
Semester: Spring 2015 Instructor: B. G. Ritz
Contact Info: britz@maine.edu Office Hours: TWF 2-4 pm

Telephone (207) 834-7616
Cell phone (207) 436-5081 (you can text me at this number as well)
Office: Nadeau Hall 210

Readings: Text: Economics, Case, Fair and Oster, 10th edition
Other: The Price of Inequality, Stiglitz, George, Norton, 2012)
“Project Syndicate” and other sources as assigned.

Course Description:
Introduction to Macroeconomics offers the student an opportunity to learn the basic concepts of contemporary economic theory used to analyze and manage the US economy. Through classroom lecture and discussion, the student will learn fundamental economic theories regarding markets and the macro economy. These models/theories have been used to propose solutions to the macroeconomic ailments of unemployment and inflation that occasionally plagued economies.

Global course objective:
The student will evidence an understanding of the following economic models: the production possibilities frontier; supply and demand; macroeconomic expenditure models; and money market models. Competency will be demonstrated through a series of tests that emphasize problem solving, quizzes on assigned readings, participation in class and the completion of assigned homework, papers and projects.

Student Learning Outcomes
For General Education:
Communication in English (Comm). Students will:
GE-C1: Demonstrate ability to manage the writing process to generate ideas, and to draft, revise and edit compositions
GE-C2: Demonstrate ability to manage the research process to evaluate, analyze, and synthesize a variety of texts
GE-C3: Demonstrate ability to develop well-crafted academic essays

Critical Thinking (Crit). Students will:
GE-Crit1: Demonstrate proficiency defining problems, significant variables, and identifying valid data
GE-Crit2: Synthesize knowledge from multiple sources, integrating abstract ideas and theories into effective interpretation of relevant data
Behavioral and Social Sciences (BHS). Students will:
GE-BHS1: Demonstrate recognition of key terms within behavioral and social science disciplines
GE-BHS2: Demonstrate ability to interpret common forms of data specific to the disciplines
GE-BHS3: Apply disciplinary concepts to community service or research
GE-BHS4: Describe at least two standard theories or models in a discipline
GE-BHS5: Using a case study, apply a model or theory to explain a process, evaluate a scenario, or make predictions
GE-BHS6: Apply disciplinary knowledge to contemporary social issues.
Each Topic listed below will have an identified macroeconomic outcome where appropriate. The outcome will be listed using the numbering above.

Professional Management Program’s Common Professional Components
Macroeconomics (E1)
(E1-1) Demonstrate knowledge Gross Domestic Product and its component parts
(E1-2) Demonstrate understanding of Consumer Price Indices
(E1-3) Demonstrate understanding of monetary and fiscal policy and their differences and relationships
(E1-4) Demonstrate understanding of inflation, deflation, growth, recession, and depression
(E1-5) Demonstrate knowledge of measures of unemployment
Each Topic listed below will have an identified macroeconomic outcome where appropriate. The outcome will be listed using the numbering above.

Course outline:
Legend for course outline:
Readings – indicates chapters from Economics, by Case, Fair and Oster, 10th edition
Quizzes for each these chapters will be given and are a preliminary test of the student’s comprehension of the readings prior to the test. These quizzes must be taken when offered. The instructor’s intent is to make sure the student keeps making progress towards the timely completion of the readings and the course. The student should also use these quizzes to identify weaknesses in their understanding, which can then be corrected through additional study, re-watching the supplemental video lectures or contacting the instructor.
BB – Black Board
H.W. – Homework Assignment. Due dates for the assignments will be found in BB
TPI – The Price of Inequality, Stiglitz, George, Norton, 2012)
PMD – Professional Management Division
GE – General Education

Introductory concepts
Topic 1 Definitions, Concepts and Modeling: the economist’s portal to understanding behavior – Using the production possibility frontier and the concept of comparative advantage to understand the impact of scarcity on a society’s choices and the concept of economic efficiency
Economic modeling
Production Possibilities Frontier
Opportunity cost
marginal rate of transformation
Analysis using the PPF model
Absolute advantage vs. comparative advantage Readings: Chpt.s 1 & 2 and Appendix to Chpt. 1
H.W.: BB assignment 1
Due January 24, 2014
Student Learning Outcome GE
GE- Crit1
GE-BHS1
GE-BHS5
GE-BHS6
Assessment: Test & Assignment

Topic 2 An introduction to the concept of equilibrium: using the supply and demand model to understand how the chaos of the market determines the prices and quantities of goods and services produced.
Demand
Supply
Market Equilibrium
Analysis using the market model, i.e. the supply and demand model Readings: Chpt. 3
H.W.: BB assignment 2
Due February 3, 2014
TPI: Preface
Student Learning Outcome GE
GE- Crit1
GE-BHS1
GE-BHS5
GE-BHS6
Assessment: Test & Assignment
Student Learning Outcome PMD
Microeconomics (E2-1): Demonstrate knowledge of laws of product supply and demand
Assessment: Test & Assignment

Measuring Macroeconomic Performance
Topic 3 National income accounting – getting a handle on a $15,000,000,000,000 economy – Why do economists, investors and others pay close attention to Gross Domestic Product and its components?
Circular flow model of an economy
Calculating gross domestic product
Calculating national income
Nominal GDP vs real GDP
Readings: Chpt. 20
Readings: Chpt. 21
H.W.: BB assignment 3
Due February 14, 2014
TPI: Chapter 1
Student Learning Outcome GE
GE- Crit1
GE-BHS2
Assessment: Test & Assignment
Student Learning Outcome PMD
(E1-1)
Assessment: Test & Assignment
Topic 4 The government of the U.S. is committed to controlling the levels of unemployment and prices. The alphabet soup of inflation measures and the basic methodology for the measurement of general movement in prices are discussed. The BLS’s definitions and methodology for the calculation of unemployment are also examined.
The BLS method of calculating unemployment
Table A-15
CPI vs. GDP deflator
The effect of inflation on earned and paid interest – the Fisher equation Readings: Chpt. 22
H.W.: BB assignment 4
Due February 24, 2014
TPI: Chapter 3
Student Learning Outcome GE
GE- Crit1
GE-BHS2
Assessment: Test & Assignment
Student Learning Outcome PMD
(E1-2) & (E1-5)
Assessment: Test & Assignment
Macroeconomic Models of Income, Interest Rates and Prices
Commodities Model

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