ECO202: PRINCIPLES OF MACROECONOMICS SPRINg 2010 Instructor: Bill Even Office: FSB 3018 Office Hours: MW 2:30-4:00; TR 9-10 web page: www.sba.muohio.edu/evenwe e-mail: [email protected] Phone: 529-2865 Required textbook: Principles of Macroeconomics, 9th edition, by Michael Parkin (Pearson Addison-Wesley Press), 2009. Workbook: Myeconlab. (This is a website that is purchased with your text, or may be purchased online at www.myeconlab.com . It will include an online study guide, practice tests, etc. Details on registration are included on the blackboard website.) Turning point device : Available at any of the 3 Oxford bookstores or may be purchased online. (Details on registration and purchase of either a turning point device or responseware access are included on the blackboard website.) Course Description : The first objective of the course is to provide the student with an understanding of several measures of macroeconomic performance. The course will then develop a model of the macroeconomy that will be used to understand how various “shocks” can affect the economy and lead to a “business cycle” and affect several key macroeconomic variables (e.g. interest rates, unemployment and inflation rates, Gross Domestic Product, wages). The course will also examine the many controversies surrounding the ability of the federal government or monetary authorities to smooth out the business cycle. The arguments will be put in the context of what is currently transpiring in the U.S. economy. The student will learn that differences in opinion on the efficacy of fiscal and monetary policy will turn crucially upon the validity of several assumptions that are made in the macroeconomic model. In addition to the concerns regarding the business cycle, the course will examine the determinants of long term economic growth, and the ability of government to influence growth with tax and spending policies. Attention will also be given to the impact of the macro-economy on financial markets (e.g. the stock and bond market) and the determinants of trade flows and exchange rates. Macroeoncomic theories will also be used to improve the understanding for different points of view on the desirability of various tax or spending programs. Liberal Education Goals. Eco 202 is a Liberal Education Foundation Course and a root course in economic thematic sequences. In much of the course, you will discover that there are controversies surrounding many of the key questions in macroeconomics. You will learn to be critical in your thinking about what others claim about the ability to control how the economy performans or how a particular policy will affect economic performance. Understanding empirical measures of prices, output, employment, and other macroeconomic variables requires a critical analysis of the measures and their potential shortcomings. Once students understand how macroeconomic variables are measured, they will learn a model of the macro-economy. The model provides a framework to think critically about the cause and effect of variations in macroeconomic variables. The model's credibility is critically assessed by its ability to explain the fundamental facts of the macroeconomy. A clear understanding of the model permits us to analyze the effects of economic shocks as well as monetary and fiscal policy. Understanding the context of a policy action is critical tothe assessment of both the effects and the desirability of the policy. An appreciation of the differences in the perception of the underlying structure of the economy is essential to understanding disagreement and controversy over macroeconomic policy, and to reflecting on appropriate policy action. COURSE GUIDELINES Grades. Your course grade will be based upon 2 midterms, quizzes, and a cumulative final exam. The weights on each are listed below. If you do better on the final exam than on your worst midterm (in percentage terms), the final exam score will replace the lowest midterm score. Myeconlab (with lowest two scores dropped) 10% Quizzes (with lowest two quiz scores dropped) 10% First midterm 25% Second midterm 25% Final exam 30% Myeconlab assignments will be given for nearly every chapter. Your overall Myeconlab score will be based upon an average of the percentage scores for each assignment. You must purchase an access code with your textbook, or you may purchase access online with a credit card at www.myeconlab.com . Details on registration for myeconlab are available on my blackboard website under “course documents”. Quizzes will be given on a regular basis and will be adminstered online. A failure to complete the quiz by the announced deadline will result in a zero on the quiz. Students will be made aware of an upcoming quiz via email and/or a blackboard announcement at least 24 hours in advance. Your overall quiz score will be based on an average of the percentage scores for all the quizzes after dropping the two lowest scores. Participation Bonus: Throughout the semester, we will use turning point software to test your understanding of the class material during the lectures. Each day that the participation is scored, you may score some “bonus points”. If you score above 70% on a given day, you receive a participation point. If you score below 70% but above 40%, you will receive a half-point. If you score below 40%, you will not receive a bonus point. Obviously, if you miss class for any reason, forget your clicker, or have an inoperable clicker, you will not receive a bonus point. At the end of the semester, I will calculate the percentage of possible participation points received. Based on your overall performance score, I will add points to your overall total (described in the grades section) as follows: 90% and above: 3 points 80-89.99 : 2 points 70-79.99 : 1 point Below 70 : 0 points These participation bonus points will be added to your overall grade score before determining the grade you receive in the course. For example, if you had an average of 79% based upon the exams, quizzes and homeworks and also earned more than 90% of the possible participation points, your course grade would be based upon an overall score of 82 percent (a B-). XR response device. Everyone must purchase a turning point device. Information on how to register the clicker for my