ECONOMICS 2301-4501 PRINCIPLES OF MACROECONOMIC THEORY EASTFIELD COLLEGE SPRING 2012 Jeff Carbiener Room G219 LEC R 7:05-9:55 LC237 (972) 860-7156 Email: [email protected] COURSE DESCRIPTION Sophomore standing is recommended. An introduction to principles of macroeconomics is presented. Economic principles are studied within the framework of classical, Keynesian, monetarist and alternative models. Emphasis is given to national income determination, money and banking, and the role of monetary and fiscal policy in economic stabilization and growth. Other topics include international trade and finance. (3 Lec.) INTRODUCTION This course is an introduction to macroeconomic theory and its principles. Specifically, this course offers some insight into the functioning of our economy, concerning itself with such issues as scarcity and choice, supply and demand, unemployment and inflation, and national income accounting. In addition, we will examine the U.S. banking and monetary system, fiscal and monetary policy, budget deficits and their implications, and the role of trade in the global economy. Often, applications to real world events and circumstances will be used. It is hoped that the student will emerge from this course with a better understanding of the forces that determine particular behaviors within the market system. EXEMPLARY EDUCATIONAL OBJECTIVES IN MACROECONOMICS Economics 2301, as part of the Core Curriculum satisfies the following Exemplary Educational Objectives in Economics set forth by the Texas Higher Education Coordinating Board. 1. To understand the methods, technologies, and data that economists use to investigate the human condition. 2. Understand the development of our economic institutions and processes and how they relate to our political system and culture. 3. Demonstrate the use of and offer critiques for alternative explanatory systems and theories in the principles of macroeconomics course. 4. Understand and describe alternative explanations and approaches to domestic social issues. 5. Analyze how historical, social, political, cultural and global issues have an influence on our economy. 6. Understand the evolution and current macroeconomic role of the U.S. in the world economy. 7. Differentiate and analyze historical evidence (documentary and statistical) and differing points of view in economics. 8. Develop the ability to establish and apply reasonable criteria in determining the acceptability of historical evidence and social research.9. Analyze, critically assess, and develop creative solutions for macroeconomic problems. 10. Be able to apply the macroeconomic principles and theories presented in this course by using the information obtained from the news media and other appropriate sources to evaluate current economic policy as it relates to the current economic and public policy environment. CORE CURRICULUM INTELLECTUAL COMPETENCIES (CCIC) Economic 2301 satisfies the following Core Curriculum Intellectual Competencies defined by the Texas Higher Education Coordinating Board. 1. READING: the ability to analyze and interpret a variety of printed materials-above 12th grade level. 2. WRITING: the ability to produce clear, correct and coherent prose adapted to purpose, occasion and audience-above 12th grade level. 3. LISTENING: analyze and interpret various forms of spoken communications, possess sufficient literacy skills of writing and reading-above 12th grade level. 4. CRITICAL THINKING: think and analyze at a critical level. 5. COMPUTER LITERACY: understand our technological society, use computer based technology in communications, problem solving, acquiring information. READING ASSIGNMENT AND COURSE ADMINISTRATION The required text for this course is Macroeconomics, seventh edition, by O’Sullivan, Sheffrin & Perez (Prentice Hall). Additionally, there is an accompanying study guide, which is optional but recommended. I may also at times bring in other outside sources of material. Each student is expected to stay on top of the material being covered in class. The student should refer to the syllabus if there are any questions. The main benefit to the student of the textbook is to supplement the class lectures or assist him/her in doing any course handouts. Everything on the exams is something that was covered in the lectures (an added incentive for class attendance). The course will follow the framework of the textbook, although some topics may be given more attention, while others less. Course grades will be based on three exams taken throughout the semester. Final grades are based on the following points scale: A 270 - 300 B 240 - 269 C 210 - 239 D 180 - 209 F < 209 OFFICE HOURS Office hours are by appointment. Should a student have questions, he/she should feel free to set up a time in which we can meet. I am generally available before and after class.ATTENDANCE Class attendance is expected from each student, and although attendance is not a formal part of the student’s grade, it is important that the student not miss class, as he/she is responsible for all material covered. (See the section in the syllabus regarding attendance and financial aid). CELL PHONES All cell phones need to be turned off during class time. Additionally, cell phones will not be allowed as calculators during exams – students should bring a calculator to assist them on the day of an exam. EMAIL POLICY Legal privacy issues prevent your instructor from discussing your work or your grades on commercial e-mail accounts. If you wish to send your papers as attachments to an e-mail (and the instructor permits it), or if you have a question about your grade, you must open a student e-mail account. The account is free. You may set it up by going to www.dcccd.edu and click on Student Services, Online Services, and Student NetMail. All students receiving financial aid must open a student NetMail account. COURSE READING The following is a list of the chapters that will be discussed in class throughout the semester. The dates of the exams will be announced in class in advance of the exam; it is the responsibility of the student to be aware of the exam dates. CHAPTER 1 Introduction: What is Economics? CHAPTER 2 The Key Principles of Economics CHAPTER